Federal Reserve Chair Jerome Powell arrives to speak during a press conference following the Federal Open Markets Committee meeting at the Federal Reserve on January 28 in Washington, DC. Kevin Dietsch/Getty ImagesThroughout much of 2021, many Federal Reserve officials hesitated to raise interest rates despite consistently rising inflation. Fed Chair Jerome Powell has repeatedly acknowledged the central bank could have helped prevent the vicious chapter of inflation that ensued had it not waited so long to raise rates. Now, with the risks of higher inflation climbing due to soaring energy prices stemming from the war with Iran, Fed officials may be much more hesitant to lower rates, even as the labor market has weakened significantly over the past year. On the other hand, some analysts believe the Fed may have to cut, in order to avoid the economic slowdown that comes as a result of higher gas prices.

Source: CNN March 18, 2026 17:20 UTC