Federal Reserve kept rates unchanged, signaled one possible cut in 2026, and projected higher inflation amid Middle East tensions, while markets reacted cautiously and unemployment outlook remained steady.

The U.S. Fed maintains interest rates amid economic uncertainty from the Iran war, despite pressures for cuts and inflation concerns.

The U.S. Fed maintains interest rates amid economic uncertainty from the Iran war, despite pressures for cuts and inflation concerns.

Fed Chair Jerome Powell said “higher energy prices will push up overall inflation,” but rate cuts are still expected.

"In the near term, higher energy prices will push up overall inflation," Fed Chair Jerome Powell said, referring to steeper costs from the war in the Middle East.