Japan Inflation Expectations Rise as BOJ Rate Hike Timing Faces Uncertainty 
US Stock Futures Hold Steady Ahead of CPI Data and Iran Conflict Concerns 
Eurozone Recession Risks Rise as Middle East Conflict Threatens Growth, ECB Official Warns 
US Inflation Expected to Rise Again in April as Fed Signals Higher Interest Rates 
South Korea Central Bank Signals Inflation Concerns as Oil Prices Surge 
ECB Rate Outlook: Ceasefire Eases Pressure but Hikes Still Expected in 2026 
Asian Currencies Slide as Indian Rupee Hits Record Low Amid Iran Tensions 
Dollar Rises as Strait of Hormuz Crisis Pushes Oil Prices Higher 
Trump-Iran Tensions Keep Oil Prices Elevated Amid Hormuz Supply Fears 
BOJ Rate Decision in Focus as Yen, Inflation, and Nikkei Hang in Balance 
ECB Signals Possible Interest Rate Move if Inflation Outlook Fails to Improve 
Trump Says Iran Ceasefire ‘On Life Support’ as Oil Prices Surge Above $104 
Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing 
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.
