US Fed Finally Reveals Why It’s Refusing to Move Rates

The Federal Reserve's minutes from its February and March 2026 discount rate meetings reveal that all 12 Reserve Banks voted to maintain the primary credit rate at 3.75%. Officials also kept the federal funds target range at 3.5% to 3.75% and interest on reserve balances at 3.65%. Directors reported stable economic conditions, with limited hiring and modest wage growth, though some districts noted difficulties filling specialized roles. Business investment in technology and AI was observed to boost efficiency, but AI's direct labor impact remains minimal. While tariff-related price pressures have eased, nonlabor costs in healthcare and energy are rising. The Fed's decision to hold rates steady indicates caution regarding further easing, despite market expectations for rate cuts later in the year. Future inflation data will be crucial for assessing potential shifts in the FOMC's stance.

(Source：BeInCrypto)