WASHINGTON (Gray DC) – Uncertainty about the war in Iran led Federal Reserve Board members to leave interest rates unchanged, the central bank announced Wednesday.
After the decision was announced, Fed Board Chair Jerome Powell addressed the state of the U.S. economy.
“The U.S. economy has been expanding at a solid pace while job gains have remained low,” he said. “The unemployment rate has been little changed in recent months and inflation remains somewhat elevated.”
Powell said Fed governors are concerned about the impact of the Iran war on the U.S. economy.
“We see the current stance of monetary policy as appropriate to promote progress toward our maximum employment and 2% inflation goals,” he said. “The implications of developments in the Middle East for the U.S. economy are uncertain. We will remain attentive to risks to both sides of our dual mandate.”
A steep increase in gas prices over the last three weeks is complicating the Fed’s outlook, with the possibility of an uptick in inflation cited as the primary reason. Only one official on the 12-member Fed Board, Stephen Miran, voted to lower interest rates. President Donald Trump appointed Miran to the board in 2025. Trump has repeatedly criticized the board for not lowering interest rates enough since retaking office Jan. 20, 2025.
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