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Middle East Conflict Threatens Rate Cuts as Federal Reserve Holds Rates Steady
9 articles |
Updated 17h ago |
Created 1d ago
The U.S. Central Bank maintained its benchmark interest rate unchanged on Wednesday, citing persistent inflation risks driven partly by rising energy prices linked to the ongoing war between Israel and Iran that has destroyed oil facilities across the Middle East.
Key Points
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1The Federal Reserve maintained interest rates unchanged following the Middle East conflict and rising energy prices.
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2Fed Chair Jerome Powell indicated that inflation may remain elevated in the short term due to higher oil costs, delaying further rate cuts until late 2024 or early 2025. The dot plot suggests two potential future reductions: one this year (likely Q3) and another next year.
Developments
[Mar 19]
The Federal Reserve held interest rates steady, citing Middle East uncertainty as a key factor; Powell warned that rising energy prices could sustain inflation temporarily. The dot plot projects two rate cuts: one this coming summer and another in early next year.
[Feb/Mar] (Previous)
Jerome Powell confirmed he will remain Fed Chair until his successor is appointed, with the current policy path showing a single cut expected later this year followed by an additional reduction beginning late 2024 or mid-summer of next year.