Fed Keeps Rates Steady as Powell Warns Iran Oil Shock Could Boost Inflation in 2026

Source: International Business Times

The Fed's message: higher borrowing costs and rising fuel prices mean tighter family budgets ahead. The Federal Reserve held interest rates steady on Wednesday and raised its 2026 inflation forecast as Chair Jerome Powell warned that surging oil prices from the Iran conflict will keep borrowing costs elevated for households well into the year. The Federal Open Market Committee (FOMC) voted 11-1 to keep the benchmark federal funds rate at 3.