March 18, 2026
The Federal Reserve just decided to keep interest rates steady at 3.5-3.75%
But why? Why not cut rates?
Well – here’s the thing – the latest inflation readings and jobs reports as I have been telling you — appear to look ok on the surface but when you look under the hood there are some red flags that are popping up. Don’t’ forget President Trump reinstated new tariffs after the supreme court said his last ones were unconstitutional…and these new tariffs are still in place and are still increasing costs. On top of that, this war with Iran is – as you know—jacking up oil prices and gas prices and causing all kinds of uncertainty in not only the oil market but in almost all aspects of the US economy. And that could lead to more inflation. Which of course the biggest way the fed can combat that is by keeping interest rates high.
We are still expecting the fed to cut rates once this year. But now this war with Iran is messing with the timing of that rate cut. The fed chairman is going to explain this decision in a little big and I’ll let you know what he said.
Read the statement from the Fed here.
