PCE News & Analysis

Fed Holds Rates Steady at 3.5%-3.75%, PCE Inflation Outlook Raised to 2.7%

The Federal Reserve's FOMC maintained the Fed Funds Rate at 3.5%-3.75% as of March 2026. The personal consumption expenditures (PCE) inflation forecast for 2026 has been increased from 2.4% to 2.7%, while the core PCE outlook also rose from 2.5% to 2.7%. Additionally, the Bureau of Labor Statistics reported a 3.4% annualized increase in producers' overall input costs for February, the highest since February of the previous year. The Fed anticipates a potential rate cut of 0.25% this year, contingent upon economic performance.