All articles tagged with #monetary policy
Minutes from the Fed's March meeting show some officials want to keep the option of rate hikes on the table amid persistent inflation and near-term energy-price pressures, while others push out anticipated rate cuts; the committee remains divided on the trajectory of policy.
The Federal Reserve released the minutes from the March 17–18, 2026 FOMC meeting, noting they reflect information available at the time of the meeting and are typically published three weeks after a policy decision; the minutes are available on the Fed’s website and include media contact information for inquiries.
Fed Chair Jerome Powell said the central bank is watching energy-price spikes tied to the Iran war and other factors, but the Fed has limited tools to directly influence energy markets.
Fed Governor Stephen Miran again urged rate cuts, saying policy could be about a point lower over the year even as oil prices spike, arguing the energy shock won’t drive inflation unless wage-price dynamics deteriorate and inflation expectations rise. He notes policy acts with a lag and inflation expectations remain anchored, and he has dissented at every meeting since September 2025; markets expect no moves this year, and Warsh’s chairmanship remains blocked.
Fed Chair Jerome Powell said he will remain in his role even if Kevin Warsh’s confirmation fails, signaling continuity in U.S. monetary policy leadership as Warsh’s nomination lingers.
Bank of England Governor Andrew Bailey cautioned markets not to jump to conclusions about future rate rises, noting the current context differs from 2022 with high rates and softer demand, and emphasizing a data‑dependent approach to policy.
The ECB left its three key rates unchanged (deposit 2.00%, main refinancing 2.15%, marginal lending 2.40%), aiming for 2% inflation in the medium term; the ongoing Middle East conflict adds uncertainty and upside inflation risk via higher energy prices, with medium‑term effects depending on conflict intensity and energy pass‑through, and markets await Lagarde’s press conference for further guidance.
The Bank of Japan kept the policy rate at 0.75% with an 8-1 vote in favor of holding; one dissenter proposed a hike to 1%. It warned inflation risks are tilted to the upside due to the Iran war and higher crude oil prices, though core inflation may temporarily ease as rice-price gains cool. With Japan’s energy imports heavily exposed to the Middle East, policymakers remain cautious about normalization and will watch spring wage talks (shunto) and energy-price developments before any future moves, amid political signals of opposition to further hikes.
Jerome Powell said he would remain Fed chair past his term’s mid-May end if a successor hasn’t been confirmed by the Senate, and would stay on the Fed board until any criminal probe is resolved, effectively blocking President Trump’s efforts to force a leadership shakeup at the central bank.
The Federal Reserve kept interest rates unchanged for the second straight meeting as the war with Iran drives higher oil prices, lifting inflation risks and keeping policymakers from cutting rates.
The Federal Reserve is expected to hold rates steady while issuing new projections that may still mark a path of eventual easing this year and into 2027, but an Iran-related oil shock and persistently hotter inflation complicate the outlook, with investors also watching how these signals could shape the eventual successor to Powell, Kevin Warsh.
With oil prices spiking due to the Iran war and mixed jobs data, the Fed is expected to hold its benchmark rate at 3.5–3.75% in March while weighing inflation against a softer labor market; economists expect no cut until mid-year, as a revised Q4 GDP shows weaker growth and higher energy costs could keep inflation elevated.
Beth M. Hammack, president of the Federal Reserve Bank of Cleveland, urges patience on policy, saying inflation remains a concern and the Fed should keep rates unchanged for an extended period, with no rush to cut after last year's reductions amid uncertainty from the Iran conflict and trade tariffs.
Asia-Pacific shares rose after Wall Street gains driven by Nvidia and Oracle, with Japan’s Nikkei 225 hitting a fresh high on the Takaichi growth narrative; Kospi rose while Hang Seng fell, the Bank of Korea held rates at 2.5%, and Nvidia’s strong data-center revenue boosted tech names and fed the AI rally in U.S. indices.
China's central bank left its benchmark lending rates unchanged for the tenth straight month, keeping the 1-year LPR at 3% and the 5-year LPR at 3.5% while signaling tolerance for a gradually stronger yuan as it seeks to support a slowing economy and shift toward services demand. The yuan has firmed recently, and authorities hope this currency appreciation will coexist with export pressures amid a weak consumer outlook and ongoing real estate weakness.