{"id":2581391,"date":"2026-03-18T15:54:58","date_gmt":"2026-03-18T19:54:58","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-forgoes-interest-rate-cut-as-inflation-lingers\/"},"modified":"2026-03-18T15:58:05","modified_gmt":"2026-03-18T19:58:05","slug":"fed-forgoes-interest-rate-cut-as-inflation-lingers","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-forgoes-interest-rate-cut-as-inflation-lingers\/","title":{"rendered":"Fed forgoes interest rate cut as inflation lingers"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffed-forgoes-interest-rate-cut-as-inflation-lingers%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2581391&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The Federal reserve kept its policy rate at 3.50%-3.75% amid persistent inflation and released updated projections that point to a cautious,data-dependent path for 2026.<\/p>\n<p>Key points:<\/p>\n<p>&#8211; The Fed held rates steady after a two-day meeting, citing inflation still above the 2% target.<\/p>\n<p>&#8211; New projections show inflation at about 2.7% by year-end, unemployment around 4.4%, and GDP growth near 2.4% for 2026.<\/p>\n<p>&#8211; Inflation, as measured by the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-numbers-are-in-bidens-inflation-is-not-going-away\/\" title=\"The Numbers Are In, Biden\u2019s Inflation Is Not Going Away\">personal consumption expenditures index<\/a>, was around 2.8% in January, with CPI showing softer readings but still elevated.<\/p>\n<p>&#8211; The labor market has cooled (February payrolls fell by about 92,000, unemployment rose to 4.4%), but not enough to justify rapid rate cuts.<\/p>\n<p>&#8211; One vote against the decision came from Fed Governor Stephen Miran, who favored a 25 basis point cut.<\/p>\n<p>&#8211; There is important political pressure around rate policy: President Trump has pushed for larger cuts, while Fed Chair Jerome Powell disclosed a Department of Justice investigation into his testimony about a Fed construction project, wich he described as an effort to sway policy.<\/p>\n<p>&#8211; trump nominated former Fed governor Kevin Warsh to replace Powell,but Senate Republicans,lead by Sen. Thom Tillis,have signaled they may block Warsh\u2019s nomination until the investigation concludes.<\/p>\n<p>&#8211; The path for rate cuts in 2026 remains uncertain; if inflation moves toward 2% and the labor market further slows, more easing could occur, but the Fed appears to remain in a wait-and-see stance.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Fed forgoes interest rate cut as inflation lingers<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2531827\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>The&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/federal-reserve\/\">Federal Reserve<\/a>&nbsp;voted Wednesday to hold its <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/interest-rates\">interest rate<\/a> target steady as inflation remains elevated.<\/p>\n<p>After a two-day meeting in&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/washington-dc\">Washington<\/a>, the Fed&rsquo;s <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/monetary-policy\/\">monetary policy<\/a>&nbsp;committee&nbsp;announced it would hold its rate&nbsp;target at a range of 3.50% to 3.75%. Investors had expected that outcome, but President&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/donald-trump\">Donald Trump<\/a>&nbsp;has pushed hard for more aggressive rate cuts. The central bank has not cut rates in 2026, after implementing cuts at three successive meetings to end 2025. <\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/house\/4495994\/democrats-move-to-force-dhs-funding-vote-without-ice-and-border-patrol\/\">Democrats move to force DHS funding vote without ICE and Border Patrol<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/state\/4496166\/virginia-republican-bucks-blue-wave-special-election\/\">Virginia Republican bucks blue wave in special election<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/policy\/national-security\/4495955\/gabbard-patel-deny-knowledge-trump-emergency-election-order-plans\/\">Gabbard and Patel deny knowledge of Trump emergency election order plans<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/senate\/4493494\/democratic-presidential-contenders-tax-cuts-woo-gop-voters\/\">DEMOCRATIC PRESIDENTIAL CONTENDERS EYE TAX CUTS TO WOO GOP VOTERS<\/a><\/strong><\/p>\n<p>Fed governor Stephen Miran, who was appointed by Trump, voted against the decision, preferring a <a href=\"https:\/\/amzn.to\/3YuVZYV\" >quarter percentage point rate cut<\/a>.<\/p>\n<p>The Wednesday decision to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sp-500-nasdaq-futures-rise-as-investors-pin-hopes-on-fed-pause\/\" title=\"S&amp;P 500 and Nasdaq futures up on hopes of ... pause.\">hold interest rates steady<\/a> comes as the labor market undergoes a slowdown that some argue should necessitate lower interest rates. Still, the softening of the labor market has not progressed to a point that would force the Fed to cut rates rapidly.<\/p>\n<p>The economy&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/4483115\/economy-lost-jobs-february-key-facts-figures\/\">shed 92,000&nbsp;jobs<\/a>&nbsp;in February, and the unemployment rate edged up to 4.4%, the Bureau of Labor Statistics said last Friday. <\/p>\n<p>But the Fed weighs not only the labor market, but also inflation when deciding the best course of action for monetary policy. And inflation has remained above the Fed&rsquo;s 2% long-run target, something that the Fed board sees as necessitating tighter monetary policy.<\/p>\n<p>In the central bank&rsquo;s preferred gauge, the personal consumption expenditures index,&nbsp;inflation fell one-tenth of a percentage point in January to 2.8%. Inflation has been <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/4487288\/inflation-held-february-affordability-woes-persist\/\">a bit lower<\/a> in the more widely watched consumer price index.<\/p>\n<p>While still high, inflation is lower than during the worst of the Biden administration years, when prices rose as much as 7% in one year.<\/p>\n<div class=\"infogram-embed\" data-id=\"76286758-36cd-4770-b4fd-8402685e3732\" data-type=\"interactive\" data-title=\"Jan 2026 PCE\"><\/div>\n<p><script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(e,n,i,s){var d=\"InfogramEmbeds\";var o=e.getElementsByTagName(n)[0];if(window[d]&&window[d].initialized)window[d].process&&window[d].process();else if(!e.getElementById(i)){var r=e.createElement(n);r.async=1,r.id=i,r.src=s,o.parentNode.insertBefore(r,o)}}(document,\"script\",\"infogram-async\",\"https:\/\/e.infogram.com\/js\/dist\/embed-loader-min.js\");<\/script>    <\/p>\n<p>The Fed also released updated multiyear projections for inflation, GDP, and unemployment, as it does every other meeting.<\/p>\n<p>Fed officials said they see inflation, as gauged by the personal consumption expenditures index, running at 2.7% by the end of the year. That is an increase from the board&rsquo;s last projections in December, when they predicted inflation would fall to 2.4% by the end of 2026.<\/p>\n<p>The officials also projected that the unemployment rate would remain at 4.4% by the end of this year.<\/p>\n<p>In terms of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-working-with-reporters-to-reshape-coverage-of-economic-woes-under-biden-as-approval-sinks-report\/\" title=\"White House Working With Reporters \u2018To Reshape Coverage\u2019 Of Economic Woes Under Biden As Approval Sinks: Report\">gross domestic product growth<\/a>, they predict 2.4% GDP growth this year, an increase from December, when board participants were projecting more modest 2.3% growth in 2026.<\/p>\n<p>The latest interest rate decision also comes at a tumultuous time at the Fed, which has faced immense pressure from the White House to slash interest rates.<\/p>\n<p>In January, in an astonishing video statement, Fed Chairman Jerome Powell disclosed a&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/4415360\/what-we-know-doj-investigation-powell\/\">Justice Department investigation<\/a>&nbsp;into his testimony about cost overruns on a Fed construction project and said that the inquiry was an effort by Trump to sway him to change interest rate policy.<\/p>\n<p>If Powell&rsquo;s claim is true, it would be an unprecedented intervention by the executive into the traditionally independent workings of the Fed. <\/p>\n<p>Since then, Trump nominated former Fed governor Kevin Warsh to replace Powell, whose term is up in just a few months.<\/p>\n<p>Still, given the investigation, there are questions of whether Warsh can even be seated at the Fed board in the near future.<\/p>\n<p>Retiring Sen.&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/thom-tillis\/\">Thom Tillis<\/a>&nbsp;(R-NC), a member of the Senate Banking, Housing, and Urban Affairs Committee, vowed to block Trump&rsquo;s nominees to the Fed and whoever he nominates to replace Powell until the legal matter has concluded.<\/p>\n<p>On Wednesday, Tillis&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/x.com\/Eleanor_Mueller\/status\/2034293112504266974\">indicated<\/a>&nbsp;to <em>Semafor<\/em> that he still intends to block Warsh&rsquo;s nomination.<\/p>\n<p>&ldquo;There&rsquo;s only one way out of a box canyon; only one way out,&rdquo; Tillis said. &ldquo;And I think that they just need to recognize that all they&rsquo;re doing is delaying the confirmation of a good nominee. And I told Mr. Wash, when he was sitting in this chair, my position is as important for him as it is for the current Fed chair.&rdquo;<\/p>\n<p><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/senate\/4495659\/pete-ricketts-introduces-legislation-banning-congressional-stock-trades\/\">PETE RICKETTS INTRODUCES LEGISLATION BANNING CONGRESSIONAL STOCK TRADES<\/a><\/strong><\/p>\n<p>It is unclear how many rate cuts, if any, will end up coming in 2026.<\/p>\n<p>If inflation begins to fall back to the Fed&rsquo;s 2% level and the labor market continues to soften, it could prompt more rate cuts this year, but in some sense the Fed is in wait-and-see mode when it comes to monetary policy.<\/p>\n<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fed holds rates steady as inflation lingers<\/p>\n","protected":false},"author":3360,"featured_media":2581392,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/03\/AP26072705442283_0b151a.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651,538],"tags":[7498,5708,33477,10752,38541],"class_list":["post-2581391","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","category-washington-examiner","tag-fed","tag-inflation","tag-interest-rates","tag-markets","tag-monetary-policy"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/03\/AP26072705442283_0b151a.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2581391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3360"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2581391"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2581391\/revisions"}],"predecessor-version":[{"id":2581395,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2581391\/revisions\/2581395"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2581392"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2581391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2581391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2581391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}