Central Bank Watch
Observations from Fed Statement, Forecasts and Press Conference
March 18, 2026
The press release reads very much like the one seven weeks earlier. Again and as was very widely expected, the federal funds rate was left unchanged at 3.50-3.75%. The insertion of a new sentence in paragraph two stating “the implications of developments in the Middle East for the U.S. economy are uncertain” merely states the […] More
Central Bank Watch
Canadian Overnight Interest Rate Left Unchanged at 2.25% as Was Expected
March 18, 2026
Few countries have been caught in maelstrom of the Trump administration’s policy upheavals as much as Canada. The two countries share the world’s longest border and enjoy the largest bilateral trading relationship as well. From an historically cordial relationship, the two governments have soured immensely on one another. Trump’s massive changes and their unpredictability represent […] More
Central Bank Watch
FOMC Preview
March 18, 2026
The Federal Reserve is not expected to change its policy interest rate at this second scheduled review of 2026 and the next to last one that will be chaired by Jerome Powell. Some dissenting votes seem likely, and the risk of dissent is not entirely one sided because U.S. growth is slowing while inflation risks […] More
Central Bank Watch
Icelandic Interest Rate Hike
March 18, 2026
Policymakers at the Central Bank of Iceland today followed Australia’s lead yesterday, raising the Icelandic 7-day term rate by 25 basis points in a 3-2 decision that included two dissents favoring an increase of 50 basis points. It was the bank’s first rate increase since August 2023, and the new rate level becomes 7.5%, which […] More
New Overnight Developments Abroad - Daily Update
U.S. PPI, Fed Decision and Powell’s Press Conference Loom on a Day With Many Other Central Bank Rate Decisions as Well
March 18, 2026
There’s been scant net movement in the dollar overnight. The Federal Open Market Committee is not expected to change the 3.5-3.75% federal funds target range, but today’s meeting has created considerable attention. It’s Chairman Powell’s next-to-last meeting as chairman, but he could stay on the committee into 2028 when his 14-year term as an at-large […] More
