The United States Federal Reserve is holding its ongoing two-day key meeting amid the US-Iran war that has created uncertainty in the global economy. The conflict, triggered on Feb. 28, has disrupted global oil supply, pushing prices sharply higher. As a result, the US officials are worried that this could raise inflation further, which is already above their 2% target. At the same time, higher energy costs could slow economic growth. This has put the Fed in a difficult position, as its key goal is to ensure that inflation remains controlled while ensuring that the economy thrives.
What To Expect From March FOMC Meeting
According to Reuters, the Federal Open Market Committee (FOMC) is likely to stay cautious and lean toward tighter policies to keep inflation under control while closely watching economic risks.
At its last meeting, the Federal Reserve kept its policy interest rate steady in the 3.50%–3.75% range. In its latest meeting, it is also expected to keep rates unchanged, according to Reuters. This comes amid data pointing to little change in the US economic outlook. Even so, the recent data now seems outdated after Strait of Hormuz tensions escalated and President Donald Trump has not outlined clear objectives or timeline to end the war.
Additionally, the Fed is also preparing for leadership change as the current head, Jerome Powell's, term ends in May. He will be replaced by Kevin Warsh, nominated by Trump. Trump has been pushing for larger rate cuts by the Fed, arguing that it is needed to stimulate the economy. Wall Street traders have increased bets that the Federal Reserve may start cutting rates in June, which could be the first to be led by Warsh, if he is confirmed by the US Senate in time.
ALSO READ: US Fed Policy: Powell Faces Litmus Test Amid War-Led Risk Premium — Will FOMC Cut Or Hold?
When And Where To Watch US Fed Meeting Live
The FOMC meeting is scheduled for March 17 and 18. The policy statement will be announced at 2 p.m. ET on March 18 (12:30 a.m. IST on March. 19) at a press conference by Powell. The press conference, which follows the meeting, will be streamed live on the Federal Reserve's social media platforms, such as X and YouTube. NDTV Profit will also stream the FOMC press conference on its YouTube channel and social media platforms.
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