Federal Reserve Holds Rates Again: Middle East Escalation May Intensify Inflation—Where Will Crypto Markets Head?
Shaw, Jinse Finance
In the early morning of March 19, 2026, the Federal Reserve's second FOMC meeting of the year concluded, announcing as expected that the target range for the federal funds rate would be maintained between 3.5% and 3.75%. This marks the second consecutive FOMC meeting pause in rate cuts following three consecutive rate cuts by the Fed at the end of last year. This FOMC meeting statement specifically pointed out uncertainty regarding the impact of the Middle East situation on the US economy. The statement indicated that the Federal Reserve is holding steady and maintaining its unchanged path projection for rate cuts within the year, "threatened by energy price increases triggered by the Iran conflict, the Federal Reserve's years-long inflation-fighting efforts may be forced to extend." The statement made no mention of changes to the balance sheet related to purchases of Treasury bonds and other assets, indicating that the New York Fed's Reserve Management Purchase (RMP) operations are proceeding as planned with no changes. Among the 12 FOMC voting members, only Federal Reserve Governor Milan cast a dissenting vote this time, with dissenters cut in half compared to the last meeting. This