Trending Now - Fed Holds Rates Steady as Oil Prices and Iran Tensions Rise
WHO:
Michael Pearce, Chief U.S. Economist at Oxford Economics
Oren Klachkin, Economist at Nationwide Financial Markets
Joe Brusuelas, Chief Economist at RSM
Jerome Powell, Federal Reserve Chair
Michael McKee, Bloomberg reporter
Joe Brusuelas, Chief Economist at RSM
Federal Reserve
Jerome Powell, Federal Reserve Chair
Michael Pearce, Chief U.S. Economist at Oxford Economics
Oren Klachkin, Economist at Nationwide Financial Markets
Kevin Warsh, Nominated by Trump to replace Powell as chair
Stephen Miran, Federal Reserve Governor
Christopher Waller, Federal Reserve Governor
President Trump
WHAT:
The Federal Reserve's decision to hold rates steady was widely expected by investors.
The Labor Department reported that the producer price index rose 3.4% in February 2026, the largest increase in a year.
The U.S. shed 92,000 jobs in February 2026, a sharp decline compared to an expected gain of 60,000 jobs.
The Fed's policy statement indicated a slightly faster pace of growth and higher inflation projections for 2026.
The Federal Reserve's decision to hold rates steady marks its second consecutive pause in 2026.
The Labor Department reported that the producer price index rose 3.4% in February 2026, the largest increase in a year.
The U.S. shed 92,000 jobs in February 2026, a sharp decline compared to an expected gain of 60,000 jobs.
The Federal Reserve voted 11-1 to hold the benchmark interest rate steady in a range of 3.5% to 3.75%.
The Fed expects one rate cut in 2026.
The producer price index rose 3.4% in February 2026 on an annual basis.
The U.S. shed 92,000 jobs in February 2026.
The Fed's decision was widely expected by investors.
WHERE:
United States
Federal Open Market Committee meeting
WHEN:
The Federal Reserve's press conference is scheduled for March 18, 2026, at 2:30 PM EST.
The Iran war began on February 28, 2026.
The Federal Reserve's press conference is scheduled for March 18, 2026, at 2:30 PM EST.
The Federal Reserve's decision was made on March 18, 2026.
The Iran war began on February 28, 2026.
Jerome Powell's press conference is scheduled for March 18, 2026, at 2:30 PM EST.
Powell's term as chair ends in May 2026.
WHY:
Michael Pearce stated, "The conflict with Iran has dramatically altered the backdrop to the March Federal Open Market Committee (FOMC) meeting and significantly increases the risks to inflation and the economy."
Oren Klachkin commented, "This isn't the kind of PPI report the Fed wants to see," indicating concerns about inflation.
Michael Pearce stated, "The conflict with Iran has dramatically altered the backdrop to the March Federal Open Market Committee (FOMC) meeting and significantly increases the risks to inflation and the economy."
The Fed's policy statement indicated that the spike in energy prices from the Iran war is expected to have a transitory effect on inflation and the economy.
The Fed cited elevated U.S. economic uncertainty and the unclear impact of the Iran war as reasons for holding rates steady.
Rising oil prices due to the Iran war are threatening to drive up inflation.
HOW:
The closely watched "dot plot" from the Federal Open Market Committee indicated one reduction in 2026 and another in 2027, though the timing remains unclear.
The closely watched "dot plot" from the Federal Open Market Committee indicated one reduction in 2026 and another in 2027, though the timing remains unclear.
The Federal Open Market Committee conducted a closed-door meeting to decide on interest rates.
The Fed's policy statement indicated a slightly faster pace of growth and higher inflation projections for 2026.
(UPDATED March 18, 2026 23:09 UTC)
The Federal Reserve's decision to hold interest rates steady was widely anticipated by investors, as the Labor Department reported a significant 3.4% rise in the producer price index for February, marking the largest increase in a year. However, the U.S. economy faced a setback with the loss of 92,000 jobs in February, sharply contrasting with expectations of a gain. As the Fed prepares for its press conference today at 2:30 PM EST, economists are expressing concerns about inflation risks, particularly in light of the ongoing conflict with Iran, which has added complexity to the economic landscape.
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(UPDATED March 18, 2026 21:09 UTC)
Today, the Federal Reserve announced its decision to hold interest rates steady, marking its second consecutive pause this year. In related economic news, the Labor Department reported a 3.4% rise in the producer price index for February, the largest increase in a year, while the U.S. economy shed 92,000 jobs, a sharp decline compared to the expected gain of 60,000. The Fed's press conference is set for this afternoon at 2:30 PM EST, where officials will address how the ongoing conflict with Iran is impacting inflation and economic risks.
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(UPDATED March 18, 2026 19:24 UTC)
Today, the Federal Reserve voted 11 to 1 to keep the benchmark interest rate steady in a range of 3.5% to 3.75%, citing elevated economic uncertainty and the impact of the ongoing Iran war. The Fed also indicated that it expects one rate cut later this year, while the producer price index rose 3.4% annually in February, and the U.S. shed 92,000 jobs during the same month. Jerome Powell's press conference is scheduled for later today at 2:30 PM EST, as his term as chair is set to end in May.