economy
March 18, 2026
Fed Holds Interest Rates Steady
From mortgage rates to auto loans and credit cards, here’s a look at how the Fed's March interest rate decision may affect your finances.
TL;DR
- The Federal Reserve kept interest rates unchanged at its March meeting.
- The federal funds rate remains in a target range of 3.5% to 3.75%.
- Geopolitical turmoil, particularly the war in Iran, and inflation pressures have ruled out interest rate cuts.
- The Fed's decision offers little relief to consumers facing affordability challenges due to rising prices, especially for gas.
- President Donald Trump has publicly urged Fed Chair Jerome Powell to lower interest rates.
- Higher energy costs could have longer-term inflation implications.
- Mortgage rates have increased due to concerns about the Middle East conflict fueling inflation.
- Federal student loan rates are fixed and partially based on the 10-year Treasury note.
- Auto loan affordability is a concern due to inflated prices and high financing costs.
- Savers may benefit as deposit rates tend to correlate with the federal funds rate, remaining above the inflation rate.
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