New Delhi, March 19 -- The US Federal Open Market Committee (FOMC) on March 18 kept benchmark interest rates steady for the second consecutive time, a move largely in line with market expectations given the increased risk of inflation driven by a war in the Middle East. At present, the target range for the federal funds rate stands at 3.5% to 3.75%.

The US Federal Reserve maintained a status quo on the federal funds rate for the second consecutive policy decision. In its January meeting, too, the central bank chose to leave rates unchanged after reducing rates in three consecutive policy meetings in September, October, and December 2025.

Notably, policymakers see the possibility of one 25 basis points rate cut in 2026 and one cut of the...