“In the near term, higher energy prices will push up overall inflation, but it is too soon to know the scope and duration of the potential effects on the economy,” Powell said in a press conference following the Fed’s 11-1 decision to maintain its benchmark overnight interest rate in the 3.50%-3.75% range. And the possibility that the Fed’s next move “might be an increase did come up at the meeting as it did at the last meeting,” Powell said, though he added that the “vast majority” of the officials don’t have that outcome as their base case. Fed policymakers now expect inflation, as measured by the central bank’s preferred gauge, to end the year at 2.7%, not far below the current rate and higher than the 2.4% projected in December, reflecting fallout from the spike in global oil prices that followed the start of the bombing campaign against Iran.
Author: Reuters
Published at: 2026-03-18 22:40:37
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