U.S. Fed Keeps Rates Unchanged Amid Iran War Uncertainty

The US Federal Reserve held interest rates steady at 3.50% to 3.75% for a third straight meeting, reflecting caution amid rising global uncertainty. According to the Fed’s statement, tensions in the Middle East and elevated energy prices continue to weigh on the economic outlook and keep inflation high.

The decision exposed sharp internal divisions. The report said three officials opposed signalling future rate cuts, while one policymaker pushed for an immediate reduction. This marks the highest level of dissent since 1992.

The #US Federal Reserve has voted to hold interest rates despite recording the most dissenting votes in decades, concluding Jerome Powell’s final meeting as the central bank’s chair amid a contentious relationship with President Donald Trump.#Forbes

For more details: 🔗… pic.twitter.com/tKMHlvoyhW

— Forbes Middle East (@Forbes_MENA_) April 29, 2026

Chair Jerome Powell indicated he will remain on the Fed’s board beyond his term, citing concerns about institutional stability amid legal challenges from the Trump administration. His move delays President Donald Trump from appointing a replacement.

Inflation stands at 3.3%, unemployment at 4.3%, and hiring has slowed, highlighting the Fed’s balancing act between controlling prices and sustaining growth.

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Warsh Fed Nomination Unlikely To Bring Quick Rate Cuts

Kevin Warsh, the Federal Reserve chair nominee backed by Donald Trump, is unlikely to deliver rapid interest rate cuts despite White House expectations, according to analysis reported by CNN. The report said multiple economic factors are limiting the case for lower rates. Inflation remains elevated, with consumer prices rising 3.

tippinsightsTIPP Staff