US Edition
Fed 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.
38 Articles
38 Articles
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.
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.
During this Wednesday's day, the Federal Reserve decided to maintain interest rates, as anticipated by the market, leaving the rates in a range of 3.5% to 3.7%.Of the twelve members of the committee, ten of them, including President Jerome Powell, voted in favour of maintaining the rates. Only two members voted against, one of them Stephen Miran (appointed by President Donald Trump), preferred to reduce the rate by 0.25 percentage points at this…
The cut demanded by Donald Trump does not arrive. The Federal Reserve leaves the rates unchanged between 3.5% and 3.75% in the penultimate meeting of the era of Jerome Powell. The decision, taken with 11 favorable votes and one contrary, arrives in a context of increasing uncertainty, both on the internal and the geopolitical ones. The slowing down in the path of disinflation causes the impact of the war in Iran on energy prices risks to further…
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