FX.co ★ Fed’s Two‑Year Rate Projection Holds Steady at 3.1% in Q1 2026

The U.S. Federal Reserve’s two-year interest rate projection remained unchanged at 3.1% in the first quarter of 2026, matching the level recorded in the fourth quarter of 2025. According to the latest update dated 18 March 2026, the projection for the second-year policy rate shows no deviation from the previous quarter’s outlook.

The stability at 3.1% suggests policymakers are maintaining their expectations for the medium‑term rate path, with no further tightening or easing currently reflected in the two‑year horizon. For markets, the unchanged projection may be interpreted as a signal of continuity in the Fed’s policy stance, pending new data on growth and inflation later in the year.