The Federal Reserve (Fed) decided at today’s meeting to keep the target range for its policy interest rate unchanged at 3.50–3.75%.
Specifically, Fed Chair Jerome Powell expressed concern about the economic impact of the ongoing conflict in the Middle East. He emphasized that continuously rising oil prices are increasing inflationary pressures and making monetary policy decisions more difficult.
Powell also noted that whether the Fed will raise or lower interest rates going forward will depend directly on macroeconomic data and how geopolitical conditions evolve.
Additionally, this meeting marks Powell’s final one as Chair of the Fed, and he extended his congratulations to his successor, Kevin Warsh.
