US Fed defies Trump to keep interest rates unchanged amid Iran war concerns

South China Morning PostCenter-RightEN 1 min read 100% complete by Agence France-PresseMarch 18, 2026 at 07:52 PM

AI Summary

short article 1 min

The US Federal Reserve decided to keep interest rates unchanged on Wednesday, holding steady at a range between 3.50% and 3.75%. This decision comes despite President Trump's pressure and amid concerns about inflation, weak labor demand, and economic uncertainty stemming from the US-Israel war on Iran. The Fed cited the "uncertain" implications of Middle East developments on the US economy as a factor in its decision. While the bank had previously cut rates three times last year, analysts suggest the potential for rising oil prices and inflation due to the war made immediate moves unlikely, despite the Fed's dual mandate to maintain price stability and maximum employment. The vote to hold rates steady was 11-1, with officials indicating a possible rate cut later in the year.

Key Entities & Roles

Key Player Opposition Context

New York Stock Exchange 40% Israel 50% Middle East 60% Iran ×270% Donald Trump 80% United States ×280% US Federal Reserve ×290%

Keywords

interest rates 100% federal reserve 90% inflation 80% iran war 70% us economy 70% economic outlook 60% labour demand 50% rate cut 50% monetary policy 40%