Global Capital Realigns Toward the United States: America Consolidates as the Preeminent Perimeter for Asset Preservation and Technology Buildout

On March 18, 2026, the Federal Reserve decided to maintain the federal funds rate at 3.5–3.75% and postponed any rate cuts indefinitely. 

Markets had anticipated cheaper credit in the first quarter but instead received a clear signal that elevated borrowing costs will persist for a longer period. Fed Chair Jerome Powell explicitly linked this decision to the oil shock triggered by the U.S. operation in the Middle East.

The inflation forecast based on the Personal Consumption Expenditures (PCE) index was revised upward to 2.7% for 2026, compared to the December projection of 2.4%.

The March 18 decision reflects an internal contradiction embedded in U.S. grand strategy—a structural cost of hegemony. A state that simultaneously serves as the world’s primary issuer of the reserve currency and a central generator of global instability cannot fully manage both roles at once.