FOMC kept rates at 3.5-3.75%. We analyze the impact on forex, gold, and prop trading accounts.
On March 18, 2026, the Federal Reserve decided to keep interest rates in the 3.5-3.75% range. The decision was in line with market expectations, but the dot plot surprised - only one cut projected for 2026.
Main reasons include rising inflation driven by oil prices (Iran conflict) and uncertainty related to trade tariffs. Powell emphasized that "near-term inflation expectations have risen in recent weeks."
Dollar: DXY remained stable after the decision but may strengthen short-term if inflation data comes in higher than expected.
Gold: Holding above $5,000 per ounce. No rate cuts is actually positive for precious metals as an inflation hedge.
Forex: Dollar pairs (EURUSD, GBPUSD) remain in consolidation. Key level to watch is 1.0750 on EURUSD.
A high-rate environment favors forex volatility. For prop trading accounts, this means more trading opportunities but also higher risk.
Key dates to watch: next FOMC meeting (May 7), CPI inflation data (April 10), NFP report (April 4).
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