The Federal Open Market Committee (FOMC) maintained the policy rate at 3.5%–3.75% for the second straight meeting
The Fed adjusted its language on the labor market in its statement, stating that the unemployment rate has "been little changed in recent months" rather than "shown signs of stabilization," and emphasized the increased uncertainty in the outlook brought on by the ongoing violence in the Middle East.
The Fed published its revised Summary of Economic Projections (SEP), which included the median projections of FOMC members, along with the ruling. in contrast to the December upgrade.
The long-term forecast was raised to 2.0% from 1.8%, while real GDP growth projections were increased to 2.4% for 2026 (from 2.3%) and 2.3% for 2027 (from 2.0%).
The unemployment rate for 2026 stayed at 4.4%, however it was somewhat raised to 4.3% (from 4.2%) for 2027.
Core PCE inflation revised up from 2.5% to 2.7% for 2026 and from 2.1% to 2.2% for 2027.
The median federal funds rate forecast remained the same, showing one more 25 basis point reduction in 2026 and 2027. However, compared to 11 in the December predictions, 14 participants now anticipate one or no reduction this year.
The decision was approved by 11 of 12 members, with Stephen Miran dissenting in favor of a 25 bps rate cut.


PBOC Scraps FX Risk Reserves to Curb Rapid Yuan Appreciation
Japan's BOJ Independence Under Fire as PM Takaichi's Rate Stance Draws Political Heat
ANZ and Westpac Forecast Two RBA Rate Hikes in March and May 2026
Japan Nominates Reflationist Economists to BOJ Board, Signaling Policy Shift
RBA Set for Back-to-Back Rate Hikes, Westpac Forecasts
Fed Rate Cut Hopes Fade as Oil Prices Stoke Inflation Fears
RBA Set to Hike Rates Again Amid Inflation Surge and Global Uncertainty
Fed Minutes Signal Steady Interest Rates but Hint at Potential Rate Hikes if Inflation Persists
RBA Signals Possible March Rate Hike as Energy Risks Threaten Inflation Outlook
Bank of Japan Governor Signals Gradual Progress Toward 2% Inflation Target
Fed May Tighten Policy if Inflation Stalls Despite Weak Labor Market
Bank of Korea Expected to Hold Interest Rates at 2.50% Through 2026 Amid Currency and Housing Market Risks
Bank of Japan Signals Further Interest Rate Hikes as Inflation Trends Toward 2% Target 



