Fed Holds Rates Steady Amid War and Energy Crisis

The Federal Reserve held interest rates steady in a range of 3.5% to 3.75%, amid the energy crisis triggered by the war in the Middle East, which threatens to fuel inflationary pressures.

Analysts and traders considered it a given that the FOMC would not risk policy changes amid the uncertainty created by the war. February inflation data showed upward price trends even before the war began.

Money market forecasts have shifted the next US interest rate cut to September or October, suggesting only one rate cut this year, if conditions allow.