US Fed holds rates steady

The US Federal Reserve has held interest rates steady for the third consecutive time, citing elevated inflation and uncertainty due to the Middle East conflict. The decision was made during the two-day Federal Open Market Committee meeting, which may be the last under Fed Chair Jerome Powell. The Fed's statement noted that developments in the Middle East are contributing to a high level of uncertainty about the economic outlook, and inflation is elevated due to the recent increase in global energy prices. The decision to hold rates steady came as US consumer prices in March rose 3.3 percent from a year earlier, marking the largest annual increase since May 2024. Oil prices have also surged amid the economic ramifications of the Middle East conflict. The Fed's move has been met with varying reactions, with some officials dissenting in favor of removing the reference to a future cut or an immediate rate cut. The US Fed's decision has significant implications for the global economy, particularly in the context of the ongoing Middle East conflict. The conflict has led to increased uncertainty and volatility in the markets, making it challenging for the Fed to make decisions about interest rates. The Fed's statement highlights the need for careful consideration of the economic outlook and the potential impact of the conflict on the US economy.