Image source, Bloomberg via Getty ImagesByNatalie ShermanBusiness reporterPublished18 March 2026 The US central bank has voted to hold interest rates steady again, as a spike in oil prices since the start of the US-Israel war with Iran raises economic uncertainty and threatens to drive up inflation. The decision, which was widely expected, left the Federal Reserve's key interest rate in the range of 3.5%-3.75%, where it has stood since December. Despite pressure from US President Donald Trump to slash borrowing costs, policymakers have been moving cautiously, as they face a tricky combination of rising prices and mixed signals from the job market. Analysts say the war has made them even less likely to cut, with markets now pushing back the chance of a rate cut happening, external into next year. Federal Reserve: "Too soon" to know impacts of Iran war on US economy Forecasts released after the meeting showed a majority of Fed board members still expect to cut interest rates at least once this year, with five now expecting rates could fall below 3%.
Published: March 18, 2026 6:01 pm
Source: BBC — Read original