WASHINGTON (AP) — The Federal Reserve chose to keep rates steady as of this week.
For now, Fed policymakers left short-term interest rates unchanged Wednesday for the second straight meeting at about 3.6%.
In a statement, the central bank said that the “implications of developments in the Middle East for the U.S. economy are uncertain.”
Still, by keeping their forecast for a rate cut this year and next — the same projections that they made in December — central bank policymakers appear to expect the gas price spike from the Iran war to have a largely temporary effect on inflation and the economy. Policymakers also foresee unemployment remaining unchanged by the end of this year, a more optimistic outlook than most outside economists.
Whether that turns out to be true will largely depend on the length of the conflict. The officials expect inflation to fall back to 2.2% in 2027…
