(March 16): US Federal Reserve (Fed) officials are widely expected to hold interest rates steady at their meeting this week, as attention shifts to how they may respond if fallout from war in the Middle East pulls their policy goals in opposite directions. The US-Israeli assault on Iran has injected significant uncertainty into the economic outlook, with a sharp rise in oil prices threatening to put pressure on inflation and dampen economic growth. “Supply shocks increase the risk to both sides of their mandate.”Alongside the economic complexities, a tense and consequential political drama hangs over this week’s Fed gathering. War and oilAfter cutting interest rates three times in late 2025, Fed officials left their policy rate unchanged in a range of 3.5% to 3.75% in January. The data may prompt him and other policymakers to temper their view that the labour market is stabilising.

Source: The Edge Markets March 16, 2026 12:40 UTC