US EditionFed Officials Huddle Under Pressure From Iran War, Trump’s Rage
The Federal Reserve delays rate cuts amid inflation pressures from the Iran war and leadership change, with the first cut likely postponed until September or later, economists say.
- Wednesday, the Federal Reserve's 12-member rate-setting committee, led by Chair Jerome Powell, is expected to keep rates unchanged as the Iran war scrambles the central bank's inflation outlook.
- Costlier gasoline is pushing up near-term inflation, forcing the Fed to balance fighting price rises against protecting employment; core prices rose 3.1% in January, the biggest increase in more than two years.
- The average 30-year mortgage rate jumped to 6.1% last week from 6%, straining consumers seeking home and auto loans. The Fed cut rates three times last year before pausing in January.
- Many economists now expect the first rate cut this year not until September or later, and the Fed is transitioning to a new leader, Kevin Warsh, nominated by President Trump and expected to take over after mid-May.
- Tim Duy, chief economist at SGH Macro, argues the Fed should raise its core-inflation forecast to at least 2.8% by year-end. Last Friday, a judge threw out Justice Department subpoenas to the Fed, though U.S. Attorney Jeannine Pirro said she will appeal.
44 Articles
44 Articles
Iran War clouds Federal Reserve's outlook on rate cuts
The Iran war has scrambled the Federal Reserve's outlook on inflation and unemployment and will likely further delay interest rate cuts this year, putting off any relief for consumers struggling with high borrowing costs for home and car purchases.
San Gabriel Valley Tribune
Loonie PoliticsHow many rate cuts? Iran war upends Federal Reserve’s next steps
The Iran war has scrambled the Federal Reserve’s outlook on inflation and unemployment and will likely further delay interest rate cuts this year, putting off any relief for consumers struggling with high borrowing costs for home and car purchases.
Associated Press News
How many rate cuts? Iran war upends Federal Reserve's next steps
The Iran war has scrambled the Federal Reserve’s outlook on inflation and unemployment and will likely further delay interest rate cuts this year, putting off any relief for consumers struggling with high borrowing costs for home and car purchases.
Fed officials huddle under pressure from Iran war, Trump’s rage
The Federal Reserve will hold its March policy meeting under intense political pressure from President Trump and the economic blowback of the war with Iran. After keeping borrowing costs steady in January, members of the Fed’s rate-setting committee are set to meet Tuesday and Wednesday while facing a far more tumultuous economy and political climate.…
Fed Opens March Policy Meeting With Iran Conflict Clouding the Outlook
The Federal Reserve opened its two-day policy meeting on Mar. 17, and Wall Street overwhelmingly expects the central bank to leave interest rates unchanged. At the January meeting of the policy-making Federal Open Market Committee, Fed officials left the benchmark federal funds rate—a policy rate that influences borrowing costs for businesses and households—unchanged at a range of 3.50–3.75 percent. Officials likely will wrestle with the economi…
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