Fed keeps rates steady as Iran war outlook unclear

US Federal Reserve held interest rates at 3.50%-3.75%

The Federal Reserve held interest rates unchanged at 3.50%-3.75% on March 18, for the second consecutive meeting in line with market expectations.

The Federal Open Market Committee (FOMC) said its decision was supported by 11 members, with one dissent.

Governor Stephen Miran favored a 25-basis-point rate cut.

The committee noted that inflation remains relatively elevated, while the economy continues to grow strongly.

It added that job gains have been modest, and the unemployment rate has remained stable in recent months.

The Fed reaffirmed its goal of achieving maximum employment and maintaining inflation at 2% over the longer run.

The committee said the economic outlook remains uncertain, with the impact of Middle East developments on the US economy still unclear.

It added that it will assess incoming data, the outlook, and the balance of risks when considering policy adjustments, and stands ready to adjust its stance as appropriate.