Dovish pause, hawkish undertones as US Federal Reserve reaches ‘difficult situation’

The real message is that the Fed is uncertain; there is no preset course for rates up or down at this precarious moment, writes KPMG US Chief Economist Diane Swonk.

The US Federal Open Market Committee (FOMC) – the policy setting arm of the Federal Reserve – decided to pause on rate cuts for its second consecutive meeting. The fed funds target held steady in the 3.5 percent to 3.75 percent range. The decision was accompanied by only one dissent. Governor Stephen Miran dissented for the fifth consecutive meeting in favour more cuts. The first three were in favour of a half percent cut in rates; the last two were for a quarter point cut. ...

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Authors: Diane Swonk

Published Date: 23 March 2026