FOMC Holds at 3.50–3.75%; VIX at 24, Yield Curve Normalized

The FOMC held rates at 3.50–3.75% at the March 2026 meeting as expected by markets. The yield curve had normalized to a positive slope (+50 bps spread between 10Y and 2Y Treasuries), and the VIX remained elevated at ~24 (above the historical average of ~19) reflecting ongoing policy uncertainty. The 10Y Treasury yielded 4.26%, and the 10Y breakeven inflation rate was 2.37%, consistent with anchored long-run inflation expectations near target.