The Federal Reserve held interest rates steady at 3.5 to 3.75 percent as rising geopolitical tensions and inflation risks cloud the economic outlook, reported by officials following the FOMC meeting.
The decision passed 11-1, with one member calling for a rate cut, according to the report. Markets had widely expected no change amid stubborn inflation and uneven job growth.
#BREAKING: Fed keeps rates steady as Iran conflict roils economy https://t.co/g5JW9zZ2uQ
— The Hill (@thehill) March 18, 2026
The Iran conflict has added new pressure, disrupting global energy supplies through the Strait of Hormuz and pushing oil prices above $100 per barrel. US gasoline prices have also surged, according to AAA data cited in the report.
Inflation remains above the Fed’s 2 percent target, with key measures showing persistent price pressures. Policymakers are balancing the risk of renewed inflation against slowing economic momentum.
Analysts say the Fed is likely to delay rate cuts until there is clearer evidence that inflation is easing, the report said.
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