Fed meeting live updates: Federal Reserve holds rates steady, forecasts 1 rate cut in 2026

March 18, 2026 - 21:44

In a widely anticipated move, the Federal Reserve concluded its June policy meeting by holding its benchmark interest rate steady at a 23-year high. The decision underscores the central bank's ongoing commitment to taming inflation, which remains stubbornly above its 2% target despite significant cooling from its peak.

The Fed's updated economic projections, however, delivered a hawkish surprise. Policymakers now foresee only a single quarter-percentage-point rate cut before the end of 2026, a significant shift from prior expectations for multiple reductions. This revised outlook signals a higher-for-longer interest rate environment as officials seek more conclusive evidence that inflation is sustainably returning to their goal.

In a post-meeting statement, the Federal Open Market Committee noted "modest further progress" toward the inflation objective but emphasized that the economic outlook remains uncertain. The committee reiterated that it does not expect it will be appropriate to lower the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. The announcement reflects a cautious and data-dependent approach, with the central bank prioritizing its inflation fight over near-term rate relief for consumers and businesses.