Federal Reserve Announcement: No Rate Cut!

GateUser-bd883c58 · 2026-03-22T08:59:52+00:00

The Federal Reserve decided to keep interest rates unchanged at its monetary policy meeting. Due to the Israel-Hamas war driving up oil prices and solid economic fundamentals, market expectations have pushed back the timing of rate cuts to the second half of the year, with only one rate cut anticipated.

GateUser-bd883c58

2026-03-22 08:59:52

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Why is the market expecting the interest rate cut to be delayed until the second half of the year?

On the 18th local time, the Federal Reserve concluded its two-day monetary policy meeting and announced that the federal funds rate target range would remain unchanged at 3.5% to 3.75%, in line with market expectations.

Market analysts believe that the ongoing US-Iran conflict has driven up international oil prices, intensifying inflation concerns and prompting the Fed to adopt a cautious stance on future monetary policy. Additionally, recent data shows conflicting signals in the US labor market, but the economy remains fundamentally solid, raising the threshold for further rate cuts.

Several international financial institutions have adjusted their expectations, delaying the first rate cut by the Fed this year from June to September or October, and now expect only one rate cut this year.

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