Fed Declines to Cut Rates
The Federal Reserve announced Wednesday that it will make no change to the interest rate benchmark, leaving interest rates in the range of 3.5 percent to 3.75 percent. The board of governors pointed to weak job growth, economic uncertainty due to rising energy prices, and inflation still above the central bank’s 2 percent target rate as part of the rationale for the decision.
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Federal Reserve Chairman Jerome Powell acknowledged the potential impact of the Iran war on the economy, noting that “the implications of events in the Middle East for the U.S. economy are uncertain.”
“In the near term, higher energy prices will push up overall inflation, but it is too soon to know the scope and duration of the potential effects on the economy,” Powell said.
The next meeting of the Federal Open Markets Committee will be held at the end of April.
