Energy Shocks Lock Federal Funds Rate at 3.50%–3.75% as Inflation Hits 3.3%
GT
Gideon Townsend
Fed interest rate decision · Apr 10, 2026
Source: The Digital Ledger Data Terminal
Small to mid-sized businesses are seeing interest rates on discretionary loans climb as high as 12%.
This borrowing cost remains anchored at a multi-year high after the Federal Open Market Committee held the federal funds rate steady at 3.50%’3.75% on March 17‘18, 2026. The decision followed a March Consumer Price Index report showing inflation jumping to 3.3%, up from 2.4% in February. The spike was driven by a 21.2% monthly increase in gasoline prices.
These costs rose after the March 4, 2024, closure of the Strait of Hormuz, which removed 20% of the world’s seaborne oil and liquefied natural gas from the market overnight. The event added $13 to every barrel of crude, pushing Brent Crude past $120.