Federal Reserve FOMC Statement on Economic Activity

Federal Reserve Press Releases

Published March 18th, 2026

Detected March 18th, 2026

Summary

The Federal Reserve's Federal Open Market Committee (FOMC) issued a statement indicating that economic activity is expanding at a solid pace, though job gains remain low and inflation is somewhat elevated. The FOMC decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent.

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What changed

The Federal Reserve's Federal Open Market Committee (FOMC) has released its latest statement on economic activity, noting that the economy is expanding at a solid pace. Key indicators show that job gains have been low, and the unemployment rate has remained relatively stable. Inflation continues to be somewhat elevated, and the Committee acknowledges elevated uncertainty regarding the economic outlook, including the potential implications of developments in the Middle East. The FOMC has decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent.

Regulated entities, particularly those in the financial services sector, should note the FOMC's commitment to its dual mandate of maximum employment and 2 percent inflation. The Committee will continue to carefully assess incoming data and evolving risks to determine future adjustments to monetary policy. While no immediate compliance actions are mandated by this statement, financial institutions should remain attentive to the Fed's ongoing assessment of economic conditions and potential shifts in monetary policy, as these can significantly impact market conditions and investment strategies.

What to do next

Review FOMC statement for implications on interest rate expectations and economic outlook.
Assess impact of current monetary policy stance on financial strategies and risk management.
Monitor future FOMC communications for potential policy adjustments.

Source document (simplified)

Press Release

PDF March 18, 2026

Federal Reserve issues FOMC statement

For release at 2:00 p.m. EDT

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- Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has been little changed in recent months. Inflation remains somewhat elevated.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The implications of developments in the Middle East for the U.S. economy are uncertain. The Committee is attentive to the risks to both sides of its dual mandate.

In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3‑1/2 to 3‑3/4 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Beth M. Hammack; Philip N. Jefferson; Neel Kashkari; Lorie K. Logan; Anna Paulson; and Christopher J. Waller. Voting against this action was Stephen I. Miran, who preferred to lower the target range for the federal funds rate by 1/4 percentage point at this meeting.

For media inquiries, please email [email protected] or call 202-452-2955.

Implementation Note issued March 18, 2026

Last Update:
March 18, 2026