Fed Keeps Rates Steady Amid Middle East Uncertainty

0:00Here's more Sydney news for March 19th. The Federal Reserve has decided to keep U.S. interest rates steady, as the ongoing war in the Middle East creates too much uncertainty for the economy. Chairman Jerome Powell stressed that it's way too early to predict the full impact on energy supplies, prices, and inflation. With fuel costs spiking worldwide, the Fed is holding off on any changes until things clarify. Recent strikes, like Israel's hit on Iran's major gasfield and Iran's response on Qatar's key energy hub have worsened the supply crunch. Powell admitted nobody really knows how this will play out, even joking that the committee might skip its usual economic forecast this time around. Fuel price surges are pushing inflation higher, already stuck above the Fed's 2% target for five years. Trump's tariffs are adding to the pressure, with effects still rippling due prices. The Fed now sees core inflation at 2.7% this year, unemployment steady at 4.4% and growth ticking up to 2.4%.

1:01Powell faces a tough balance. Downside risks to jobs suggest lower rates, while upside inflation risks argue against cuts. Stagflation remains a worry if prices stay high and growth slows. Powell's term as chair ends May 15th, and President Trump has nominated Kevin Wars to replace him, hoping for quicker rate reductions. A recent judge dismissed the Justice Department probe into Fed renovations as baseless, boosting chances Powell stays on as acting chair or board, governor potentially blocking aggressive cuts. DNN is sponsored by our partner. Your favorite podcasts, music, or sleep sounds coming from your pillow. No earbuds, no distractions, just listen and relax. S-O-L-L-I, solelypillow.com