Fed Holds Rates Steady, Signals Possible Hike as Warsh Era Begins

The US Federal Reserve held interest rates steady at its March meeting, but new projections indicate a potential hike later this year as inflation remains above the 2% target. Nine Fed officials now anticipate a rate increase by the end of 2026. The policy statement, under new Chairman Kevin Warsh, removed forward guidance language, reverting to a format similar to that used by Alan Greenspan. The decision was unanimous (12-0). Warsh stated that forward guidance is not "well suited" to the current economic moment and declined to provide specific future guidance, noting the next meeting is in six weeks. The move comes amid repeated demands from President Trump for rate cuts.