economy

March 18, 2026

Fed Meeting Recap: Powell Says Inflation Isn't Coming Down as Much as 'Hoped'

The Federal Reserve kept its key interest rate at the target range of 3.5% to 3.75%.

Fed Meeting Recap: Powell Says Inflation Isn't Coming Down as Much as 'Hoped'

TL;DR

  • The Federal Reserve kept its overnight lending rate target unchanged at 3.5% to 3.75%.
  • Fed Chair Jerome Powell noted that inflation progress is not as rapid as hoped.
  • The Iran war has led to surging oil prices, impacting inflation forecasts.
  • Powell stated that the economy is not experiencing stagflation, contrasting current conditions with the 1970s.
  • Powell will continue as Fed chair until an investigation into the central bank's headquarters is completed.
  • The Fed's projections show higher inflation and stronger growth forecasts, attributed to expected productivity gains.
  • The central bank aims to balance risks to the labor market (downside) and inflation (upside).
  • Higher U.S. energy production could potentially offset some negative impacts of oil price shocks.
  • Market reaction saw stocks slide following Powell's comments on inflation progress.
  • Traders are scaling back expectations for the number and timing of potential Fed rate cuts.
  • Other central banks, like the Bank of Canada and Reserve Bank of Australia, have also acknowledged the economic impacts of the U.S.-Iran war.

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