Original Source
US Fed keeps interest rates unchanged despite Trump opposition, citing Iran war uncertainty
US Fed maintains rates at 3.50-3.75%
The US Federal Reserve on Wednesday kept interest rates unchanged, defying President Donald Trump amidst persistent inflation, weak labor demand, and an "uncertain" economic outlook due to the war in Iran. The decision, made with an 11-1 vote, maintains rates in the range of 3.50% to 3.75%, with officials signaling one expected rate cut by the end of the year.
Middle East developments create US economic uncertainty
Fed officials highlighted that "the implications of developments in the Middle East for the US economy are uncertain." This statement underscores the central bank's concern over how geopolitical events, particularly the Iran war, could impact global and domestic economic stability. The Fed's cautious stance reflects its commitment to managing both price stability and maximum employment in a volatile international environment.
*Source: SCMP (2026-03-18)*
