Fed keeps benchmark rate at 3.5%–3.75% as Iran deal uncertainty clouds outlook
The Federal Reserve kept its benchmark interest rate unchanged at 3.5%–3.75% as inflation runs at 3.8% and Middle East tensions escalate. The FOMC statement removed language that had hinted at future rate cuts, while nine officials projected a rate hike this year. The Iran conflict briefly shut the Strait of Hormuz, pushing up energy prices. The decision is seen as a signal of a shift in monetary policy with implications for rate-sensitive assets and energy markets, without addressing specific stocks, index rebalancing or regulatory changes.
