Fed Signals Openness to Rate Hikes in March

Central bank officials say they can 'wait and see' how the war affects inflation.

Apr. 8, 2026 at 8:30pm

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A vibrant abstract illustration using simple geometric shapes and primary colors to conceptually represent the Federal Reserve's monetary policy decisions and their impact on the economy.The Federal Reserve's cautious approach to interest rate hikes aims to balance fighting inflation and avoiding economic recession.Washington Today

Federal Reserve policymakers indicated at their March meeting that they are increasingly open to raising interest rates, according to the meeting minutes released by the central bank. Fed Chair Jerome Powell said the Fed's current policy stance is in a good place to 'wait and see' how the war in Ukraine affects inflation.

Why it matters

The Fed's decisions on interest rate hikes have significant implications for the broader economy, impacting everything from consumer borrowing costs to stock market performance. The central bank is walking a fine line between fighting high inflation and avoiding actions that could tip the economy into recession.

The details

The minutes from the Fed's March policy meeting showed a growing number of officials felt the central bank should raise interest rates at that gathering. However, the Fed ultimately decided to hold off on hikes, opting instead to begin raising rates at its next meeting in May. Fed Chair Jerome Powell said the central bank can afford to 'wait and see' how the war in Ukraine affects inflation before taking more aggressive action.

  • The Fed held its March policy meeting on March 15-16, 2026.
  • The minutes from that meeting were released on April 8, 2026.

The players

Jerome Powell

The Chair of the Federal Reserve, the central banking system of the United States.

Federal Reserve

The central banking system of the United States that sets monetary policy, including interest rates, to promote economic growth and stability.

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What they’re saying

“We feel like our policy's in a good place for us to wait and see how that turns out.”

— Jerome Powell, Chair of the Federal Reserve

What’s next

The Federal Reserve is widely expected to raise interest rates by 0.50 percentage points at its next policy meeting on May 3-4, 2026.

The takeaway

The Fed is trying to strike a delicate balance between fighting high inflation and avoiding actions that could push the economy into recession. The central bank is taking a 'wait and see' approach to assess how the war in Ukraine impacts the economic outlook before taking more aggressive steps to raise interest rates.