US EditionFed Leaves Interest Rates Unchanged, Expects Inflation to Rise
The Federal Reserve kept rates at 3.5–3.75% and raised inflation forecast to 2.7%, citing high uncertainty from the Middle East conflict and oil price spikes.
- On March 18, the Federal Reserve held interest rates steady and projected a single reduction this year amid unusually high uncertainty, Federal Reserve Chair Jerome Powell said.
- After Iranian missile strikes, Qatar reported extensive damage and Brent crude oil jumped about 4%, settling at $107.38 a barrel, fueling inflation risks.
- The FOMC's 11-1 vote maintained policy as traders scaled back bets on cuts this year, with futures pricing easing in 2027 and the S&P 500 index sliding about 1.4%.
- Analysts flagged that 'Chair Powell was extremely vague on how the FOMC would respond to the war, repeatedly refusing to make conjectures on whether inflation or employment effects would dominate', said Steve Englander.
- Looking ahead, policymakers project inflation will be 2.2% by end of 2027 and upgrade GDP growth to 2.4% for 2026 while keeping unemployment at 4.
47 Articles
47 Articles
The week of central bank interest decisions: Fed and ECB keep key interest rates stable – despite energy price shock and uncertainties caused by the Iran war.
Attacks on the Gulf's energy infrastructure have triggered the energy race. On the eve of the US Central Bank has left its rates at a standstill and has raised its inflation estimates.
The U.S. Federal Reserve froze its benchmark interest rate, citing growing inflation concerns stemming from the aftermath of the war between the U.S., Israel, and Iran. Fed Chair Jerome Powell, who is under investigation by the Department of Justice for alleged overspending on Fed building renovations, also stated that he intends to remain on the Fed Board until the investigation is fully concluded. The Fed held a Federal Open Market Committee (…
US Fed leaves interest rates unchanged, expects inflation to climb
WASHINGTON: The US central bank held interest rates steady on Wednesday and projected higher inflation, steady unemployment and a single reduction in borrowing costs this year, a path that Federal Reserve Chair Jerome Powell said was subject to unusually high uncertainty as policymakers take stock of the impact of the US and Israeli war with Iran.
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