Federal funds rate to remain unchanged

In nearly a unanimous vote, the Federal Open Market Committee decided not to reduce the benchmark federal funds rate. The rate was previously cut to between 3.5% and 3.75% in December 2025.

The decision comes among uncertainties regarding higher inflation rates than anticipated, a stagnated labor market and the war in Iran, according to a news article from CNBC. Although the war has already resulted in disruptions to the global oil supply and higher oil prices, which could put greater pressure on the inflation rate, the true economic impacts are still unknown.

However, the economy could be experiencing growth. For instance, gross domestic product increased at a higher rate compared with in December. The Federal Reserve is still expected to make one cut in 2026 and one in 2027 to bring the federal funds rate to about 3.1%, where it’s likely to remain steady.

Read more: CNBC

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