U.S. Stock Futures Steady as Markets Await Fed Rate Decision Amid Middle East Tensions 
U.S. Dollar Slips as Iran War and Central Bank Decisions Weigh on Markets 
Gold Prices Hold Steady Amid U.S.-Israel-Iran Conflict and Fed Rate Decision 
Bank of Japan Holds Rates Steady Amid Iran War Inflation Fears 
Dollar Steadies as Oil Pullback Lifts Risk Sentiment Before Central Bank Decisions 
PBOC Scraps FX Risk Reserves to Curb Rapid Yuan Appreciation 
Bank of Japan Governor Signals Gradual Progress Toward 2% Inflation Target 
Australia's February Jobs Data Sends Mixed Signals on Rate Outlook 
Iran-Israel War Escalates: Energy Infrastructure Attacks Shake Global Oil Markets 
U.S.-Iran War Pushes Brent Crude Back Above $100 as Strait of Hormuz Tensions Persist 
Oil Prices Surge Past $100 as U.S.-Israel War on Iran Threatens Global Energy Supply 
Iran-Israel War Escalates: Cluster Missiles, Nuclear Fears, and Strait of Hormuz Crisis 
Gold Prices Hold Above $5,000 as Central Bank Meetings and Iran War Stay in Focus 
Central and Southeast Europe Economic Outlook: Hungary, Croatia and Serbia Data in Focus 
Yen Slides Near Two-Year Low as Fed Holds Rates Amid Middle East Tensions 
Oil Prices Dip as U.S. Crude Inventories Surge Amid Middle East Tensions 
Federal Reserve Chair Jerome Powell acknowledged significant uncertainty Wednesday, stating policymakers "just don't know" how rising oil prices stemming from the ongoing Middle East conflict will ultimately impact U.S. inflation and economic growth.
The Federal Open Market Committee (FOMC) kept its benchmark federal funds rate unchanged at 3.50%–3.75% for a second straight meeting, following three cumulative rate cuts totaling 75 basis points late last year. The decision aligned with widespread market expectations.
The Fed's updated dot plot continued signaling at least one rate cut in 2025 and another in 2027, but policymakers revised their core PCE inflation forecast upward to 2.7% for 2026, compared to December's 2.5% projection. Powell attributed the revision partly to surging energy costs and limited progress on tariff-related price pressures.
Since hostilities began in late February, Brent crude has surged nearly 50%, pushing U.S. gasoline prices to their highest levels since October 2023. Powell acknowledged higher energy costs would filter into overall and core inflation, but stressed it remains too early to gauge the full economic impact. He emphasized the Fed would monitor how long current geopolitical conditions persist before adjusting its policy stance.
Market strategists noted the decision, while unsurprising, reflects a narrowing path forward for the central bank. With inflation stubbornly above the Fed's 2% target and labor market signals turning mixed, analysts expect a prolonged higher-for-longer interest rate environment.
On the topic of leadership succession, Powell confirmed his term ends May 15, 2026, with Kevin Warsh nominated as his replacement. However, Senate confirmation remains stalled. Powell stated he would serve as chair on a provisional basis if his successor is not confirmed in time, and expressed his intention to remain on the Fed's board until an ongoing DOJ investigation concludes transparently.
Wall Street ended lower following Powell's press conference.
