Back to today’s briefing

Story perspectives

Fed Stays Steady Amid Inflation and Iran War Woes

3/18/2026

27 2 Full Breakdown

Summary

Story summary

The Federal Reserve held rates at 3.5% to 3.75% for the second straight meeting amid Iran war uncertainty.
Fed Governor Stephen Miran dissented, advocating for a quarter-point cut.
The Fed's projections indicate a potential inflation rise and warn of a stagflationary shock from higher oil prices.
U.S. President Donald Trump pressures Chair Jerome Powell to lower rates amid rising inflation and geopolitical tensions.

History

Historical Context

In response to the 2008 financial crisis, the Federal Reserve slashed the federal funds rate from 5.25% to a historic low of 0-0.25%, aiming to stimulate economic recovery. This unprecedented move reflected the severity of the Great Recession, which saw unemployment peak at 10% in 2009. Today, maintaining rates at 3.5%-3.75% highlights ongoing economic uncertainty and the Fed's critical role in stabilizing the economy.

1 of 2

Story summary

The Federal Reserve held rates at 3.5% to 3.75% for the second straight meeting amid Iran war uncertainty.
Fed Governor Stephen Miran dissented, advocating for a quarter-point cut.
The Fed's projections indicate a potential inflation rise and warn of a stagflationary shock from higher oil prices.
U.S. President Donald Trump pressures Chair Jerome Powell to lower rates amid rising inflation and geopolitical tensions.

1 / 2