MARKET STRUCTURE · REGULATORY · USA
Fed holds federal funds rate at 3.50%–3.75%
Change
On March 18, 2026, the U.S. Federal Reserve voted 11–1 to keep the federal funds rate at 3.50%–3.75%.
Why it matters
The Federal Open Market Committee voted 11–1 to keep the target federal funds rate in a 3.50%–3.75% range. Officials signaled one expected rate cut by the end of 2026. The committee had cut rates three consecutive times late in the previous year and held them steady at its January meeting. The statement cited an uncertain economic outlook tied to the war in Iran and noted that economic activity was expanding at a solid pace.
Implications
- · Corporate and household refinancing plans remain priced to current policy-rate levels.
- · Banks' loan pricing and credit models continue to reference the 3.50%–3.75% federal funds target range.
- · Fixed-income portfolio duration and yield assumptions remain anchored to present policy guidance.
- · Corporate treasury issuance timing and interest-cost projections remain aligned with existing rate expectations.
Who is affected
- · Household and corporate borrowers
- · Banks and other lenders
- · Fixed-income investors and asset managers
- · Corporate treasury and finance teams
What to watch
- · Officials signaled one expected rate cut by the end of 2026
Source
Topics
Business & Markets Economy Finance & Banking Monetary Policy