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Fed Meeting Amid War: Rates Hold Steady, Future Uncertain

3/17/2026

35 4 Full Breakdown

Summary

Story summary

The US Federal Open Market Committee (FOMC) will meet March 17–18 amid the US-Iran war that has raised oil prices and inflation concerns.
Economists expect the Fed to keep the policy rate at 3.5%–3.75% amid uncertainty, with some predicting no rate cuts in 2026.
Analysts watch updated projections and Kevin Warsh's nomination to replace Jerome Powell, with the conflict's duration shaping policy.

History

Historical Context

In 1979, Federal Reserve Chairman Paul Volcker raised interest rates to combat inflation, which peaked at 13.5% amid the oil crisis and geopolitical tensions. This decisive action aimed to stabilize the economy. Today, the FOMC faces similar inflationary pressures linked to the US-Iran war, with oil prices rising and rates projected to remain between 3.5% and 3.75%.

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Story summary

The US Federal Open Market Committee (FOMC) will meet March 17–18 amid the US-Iran war that has raised oil prices and inflation concerns.
Economists expect the Fed to keep the policy rate at 3.5%–3.75% amid uncertainty, with some predicting no rate cuts in 2026.
Analysts watch updated projections and Kevin Warsh's nomination to replace Jerome Powell, with the conflict's duration shaping policy.

1 / 2