{"id":5531,"date":"2026-03-18T23:36:56","date_gmt":"2026-03-18T23:36:56","guid":{"rendered":"https:\/\/pronews.in\/index.php\/2026\/03\/18\/us-fed-keeps-interest-rates-steady-amid-economic-uncertainty-iran-war\/"},"modified":"2026-03-18T23:36:56","modified_gmt":"2026-03-18T23:36:56","slug":"us-fed-keeps-interest-rates-steady-amid-economic-uncertainty-iran-war","status":"publish","type":"post","link":"https:\/\/pronews.in\/index.php\/2026\/03\/18\/us-fed-keeps-interest-rates-steady-amid-economic-uncertainty-iran-war\/","title":{"rendered":"US Fed keeps interest rates steady amid economic uncertainty, Iran war"},"content":{"rendered":"<div aria-live=\"polite\" aria-atomic=\"true\">\n<p>The United States Federal Reserve will hold interest rates steady as the labour market cools and prices on goods and services surge following the <a href=\"http:\/\/www.aljazeera.com\/news\/2026\/3\/17\/iran-war-what-is-happening-on-day-18-of-us-israel-attacks\" target=\"_blank\" rel=\"noopener\">US and Israel\u2019s joint strikes on Iran.<\/a><\/p>\n<p>The central bank will maintain its benchmark rate at 3.5\u20133.75 percent, consistent with the Fed\u2019s decision last month, when it also held rates steady.<\/p>\n<section>\n<h2>Recommended Stories <\/h2>\n<p><span>list of 4 items<\/span><\/p>\n<ul>\n<li><span>list 1 of 4<\/span><a href=\"http:\/\/www.aljazeera.com\/economy\/2026\/3\/18\/qatar-can-keep-goods-flowing-amid-tensions-customs-chief-says\">Qatar can keep goods flowing amid tensions, customs chief says<\/a><\/li>\n<li><span>list 2 of 4<\/span><a href=\"http:\/\/www.aljazeera.com\/economy\/2026\/3\/18\/not-just-energy-how-the-iran-war-could-trigger-a-global-food-crisis\">Not just energy: How the Iran war could trigger a global food crisis<\/a><\/li>\n<li><span>list 3 of 4<\/span><a href=\"http:\/\/www.aljazeera.com\/features\/2026\/3\/18\/amid-ruins-palestinians-struggle-to-preserve-gazas-historic-markets\">Amid ruins, Palestinians struggle to preserve Gaza\u2019s historic markets<\/a><\/li>\n<li><span>list 4 of 4<\/span><a href=\"http:\/\/www.aljazeera.com\/economy\/2026\/3\/18\/trump-temporarily-waives-century-old-shipping-law-amid-rising-fuel-costs\">Trump temporarily waives century-old shipping law amid rising fuel costs<\/a><\/li>\n<\/ul>\n<p><span>end of list<\/span><\/section>\n<p>\u201cThe Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The implications of developments in the Middle East for the US economy are uncertain,\u201d the central bank said in a statement announcing its policy decision and referring to its Federal Open Market Committee.<\/p>\n<p>\u201cThe Committee is attentive to the risks to both sides of its dual mandate.\u201d<\/p>\n<p>Holding rates steady was in line with estimates. CME FedWatch, a tool that tracks monetary policy decisions, forecast that there was a 99 percent chance that rates would hold steady.<\/p>\n<p>The stall comes after three rate cuts in 2025.<\/p>\n<h2><strong>Global gripes<\/strong><\/h2>\n<p>Consumers are also facing the repercussions of US President Donald Trump\u2019s trade and military policies in their daily expenses.<\/p>\n<p>\u201cDespite meaningful progress on inflation in 2024, Trump\u2019s tariffs have stalled progress and kept inflation persistently above the Fed\u2019s target. Wholesale prices are running hot as service prices surge, and now, Trump\u2019s war in Iran is rocking commodity markets around the globe,\u201d Elizabeth Pancotti, managing director of policy and advocacy at Groundwork Collaborative, an economic think tank, said in comments provided to Al Jazeera.<\/p>\n<p>Last month, the US Supreme Court ruled against the president for his use of the International Emergency Economic Powers Act (IEEPA). The high court said the president exceeded his authority and that the tariffs imposed under that order must be refunded. However, the president then imposed new tariffs not covered by IEEPA.<\/p>\n<p>The White House announced a 15 percent tariff through Section 122, which allows the president to impose tariffs for 150 days. Those changes were reflected in the producer price index report released by the US Department of Labor\u2019s Bureau of Labor Statistics on Wednesday.<\/p>\n<p>Wholesale prices rose by 0.7 percent for the month, marking the biggest one-month surge in a year. Goods prices rose 1.1 percent overall after tumbling for two months. Energy prices rose by 2.3 percent, with the cost of gas or petrol rising by 1.8 percent. Those costs are expected to get higher as tensions rise in the Strait of Hormuz following joint US-Israel strikes on Iran in late February and the subsequent retaliation.<\/p>\n<p>\u201cIn the near term, higher energy prices will push up overall inflation; however, it is too soon to know the scope and duration of the potential effects on the economy,\u201d Fed Chair Jerome Powell told reporters.<\/p>\n<p>In the last month, petrol prices have jumped for US consumers. The average price for a gallon of regular gasoline is $3.84, up from $2.92 this time last month.<\/p>\n<p>\u201cThe Fed\u2019s inflation worries extend beyond weathering a fleeting wave of one-off price hikes associated with tariffs and, more recently, an energy price spike,\u201d Stephen Stanley, chief US economist at Santander US Capital Markets, told the Reuters news agency.<\/p>\n<h2 id=\"labour-market-stalls\">Labour market stalls<\/h2>\n<p>Holding rates steady also comes as the job market stagnates. The latest jobs report, which was released earlier this month, showed that the<a href=\"http:\/\/www.aljazeera.com\/economy\/2026\/3\/6\/us-job-market-stalls-unemployment-rate-rises-before-fed-decision\"> US economy lost 92,000 jobs<\/a>, with unemployment rising to 4.4 percent.<\/p>\n<p>Meanwhile, the Job Openings and Labor Turnover Survey, or JOLTS report, which came out last week, showed 6.9 million open jobs in the US, unchanged from the month prior. That shows that employer hiring has stalled and that those who have jobs are seldom leaving for new ones.<\/p>\n<p>\u201cThis might be one of the toughest moments in recent memory for the Federal Reserve\u2019s Open Market Committee,\u201d Michael Linden, Senior Policy Fellow at the Washington Center for Equitable Growth, said in remarks provided to Al Jazeera. \u201cRecent data has revealed that economic growth in the back half of last year was extremely weak, the labour market seems to be on the precipice of disaster, and prices keep rising faster than anyone feels comfortable with.\u201d<\/p>\n<h2 id=\"political-undercurrents\">Political undercurrents<\/h2>\n<p>Wednesday\u2019s decision is the second-to-last one of current Fed Chair Powell, whose term is up in May. Powell, who was first appointed by Trump during his first administration, has been a target of <a href=\"http:\/\/www.aljazeera.com\/economy\/2026\/1\/12\/trump-administration-opens-criminal-probe-into-fed-chair-jerome-powell\" target=\"_blank\" rel=\"noopener\">Trump\u2019s scorn<\/a> and criticisms for not cutting interest rates fast enough.<\/p>\n<p>\u201cWhen is \u2018Too Late\u2019 Powell lowering INTEREST RATES?\u201d Trump posted on his social media platform Truth Social on Wednesday morning ahead of the decision.<\/p>\n<p>Previously, Trump said he would not nominate someone to lead the central bank unless the nominee agreed with his position.<\/p>\n<p>\u201cAnybody that disagrees with me will never be the Fed Chairman!\u201d Trump said in a post on Truth Social in December.<\/p>\n<p>\u201cWe at the Fed will continue to do our jobs with objectivity, integrity and deep commitment to serve the American people,\u201d Powell told reporters.<\/p>\n<p>Trump\u2019s nominee to succeed Powell, Kevin Warsh, has his nomination in flux as Republican Senator Thom Tillis said he would not vote to advance any of Trump\u2019s nominees to the central bank until a criminal probe into the current chairman, Powell, is closed.<\/p>\n<p>Tillis sits on the Senate Banking Committee, which vets nominees for the central bank, including Warsh. He said he will not approve Trump\u2019s Fed nominees <a href=\"http:\/\/www.aljazeera.com\/news\/2026\/3\/13\/us-judge-nixes-two-subpoenas-against-federal-reserve-chair-jerome-powell\" target=\"_blank\" rel=\"noopener noreferrer\">until the probe<\/a> of Powell is closed. The criminal probe of Powell centres on Fed building renovations after a judge quashed grand jury subpoenas and called the investigation a pretext to pressure the central bank to lower interest rates.<\/p>\n<p>If Warsh has not been confirmed by the Senate in time for the Fed\u2019s June 16\u201317 meeting, Powell would continue to lead the rate-setting Federal Open Market Committee.<\/p>\n<p>\u201cIf my successor is not confirmed by the end of my term as chair, I would serve as chair pro tem until he is confirmed. That is what the law calls for,\u201d Powell said.<\/p>\n<p>\u201cOn the question of whether I will leave while the investigation is ongoing, I have no intention of leaving the board until the investigation is well and truly over with transparency and finality.\u201d<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The United States Federal Reserve will hold interest rates steady as the labour market cools and prices on goods and services surge following the US and Israel\u2019s joint strikes on Iran. The central bank will maintain its benchmark rate at 3.5\u20133.75 percent, consistent with the Fed\u2019s decision last month, when it also held rates steady. &#8230; <a title=\"US Fed keeps interest rates steady amid economic uncertainty, Iran war\" class=\"read-more\" href=\"https:\/\/pronews.in\/index.php\/2026\/03\/18\/us-fed-keeps-interest-rates-steady-amid-economic-uncertainty-iran-war\/\" aria-label=\"Read more about US Fed keeps interest rates steady amid economic uncertainty, Iran war\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":5532,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-5531","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-travel"],"_links":{"self":[{"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/posts\/5531","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/comments?post=5531"}],"version-history":[{"count":0,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/posts\/5531\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/media\/5532"}],"wp:attachment":[{"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/media?parent=5531"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/categories?post=5531"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/tags?post=5531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}