Fed holds rates as energy prices soar and leadership transition looms

For the third consecutive meeting, the Federal Reserve (the Fed) held interest rates steady, in line with Cebr’s expectations.

Amid renewed inflationary pressures, driven by surging energy prices, the Fed has maintained a “wait-and-see” stance, reflecting ongoing uncertainty surrounding the duration of, and economic fallout from, the conflict in Iran.

This decision came despite dissent from four members, the highest level of opposition since 1992, underscoring the challenge of balancing persistent inflation against a softening labour market.

The move is also likely to mark the final rate decision under Jerome Powell, who is widely expected to be succeeded by Kevin Warsh.