March 18, 2026
FOMC is Buying the AI Productivity Hype
The results of the March FOMC meeting were mostly as expected. The policy rate was left unchanged by an 11-1 vote with the lone dissent from Governor Miran. The median dots for 2026 and 2027 were unchanged. Powell fielded many questions about the energy price shock but expressed the appropriate lack of conviction about the future course of the war. Powell reiterated the pre-war reaction function where the…