Fed Holds Rates Steady, Citing Higher Energy Prices

Washington, DC, March 19, 2026-"The Federal Reserve held interest rates steady Wednesday and tentatively preserved a path to cutting rates this year as higher energy prices from the Iran war threaten to prolong their yearslong inflation fight,” reports the Wall Street Journal.

“But at a news conference after the meeting, Fed Chair Jerome Powell said little to suggest cuts were around the corner and instead emphasized how little room officials might have to ease. He described the Fed’s current policy stance as sitting much closer to one that neither spurs nor slows growth, which would make rate reductions much harder to justify unless the economy weakens.

“Officials voted 11-1 to hold the benchmark federal-funds rate in a range between 3.5% and 3.75%, the second consecutive meeting with no change.”