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Federal Reserve Holds Interest Rates Steady, Still Projects One Rate Cut in 2026

Fed holds rates at 3.50%-3.75% amid inflation risks from Iran conflict and projects one rate cut in 2026 despite labor market weakness, officials said.

  • On Wednesday, the Federal Open Market Committee voted 11–1 to keep the federal funds rate at 3.5%–3.75%, marking the central bank's second consecutive pause in 2026.
  • The conflict with Iran, which began February 28, 2026, roiled global energy markets and increased inflation risks as policymakers navigated rising wholesale prices and geopolitical uncertainty.
  • Weak labor data showed the U.S. shed 92,000 jobs in February, raising unemployment to 4.4%, yet officials maintained their projection for one rate cut this year despite sticky inflation.
  • Fed Chair Jerome Powell faces leadership transition as his term expires May 15, with President Donald Trump nominating former Fed Governor Kevin Warsh to succeed him despite ongoing legal investigations.
  • Economists caution that energy shocks and geopolitical instability could keep borrowing costs elevated, with future rate cuts dependent on whether the conflict resolves and inflation pressures recede.
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(New York = Yonhap News) Correspondent Lee Ji-heon = The U.S. central bank, the Federal Reserve (Fed), held its monetary policy decision-making body, the Federal Open Market Committee (FO...) on the 18th (local time)

·Korea (the Republic of)
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US Fed raises inflation outlook over 'uncertain' Iran war impact

The US Federal Reserve raised its outlook for inflation as it held interest rates steady on Wednesday, citing an "uncertain" economic outlook due to the war in Iran.

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KRCR broke the news in on Tuesday, March 17, 2026.
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