New Delhi, March 19 -- The US Federal Open Market Committee (FOMC) on 18 March kept benchmark interest rates unchanged for the second consecutive time, largely in line with market expectations amid rising inflation risks linked to the ongoing conflict in the Middle East. The target range for the federal funds rate remains at 3.5%-3.75%.

The US Federal Reserve has now maintained the status quo on rates for two straight policy decisions. In its January meeting as well, the central bank had held rates steady after cutting them in three consecutive meetings in September, October and December 2025.

Notably, policymakers now project just one 25-basis-point rate cut in 2026 and another in 2027. No member indicated a preference for a rate hike ...