Fed Holds Rates Amid Rising Oil Prices, Geopolitical Tensions

The US Federal Reserve is set to make its policy decision on March 18, 2026, in a move that will be closely watched by investors. The rate-setting Federal Open Market Committee (FOMC) convened for its two-day meeting on March 17-18, 2026.

Global markets are tense ahead of the policy decision as investors await clarity on whether interest rates will be cut, raised, or kept unchanged. Escalating Middle East tensions have lifted oil prices, heightening inflation risks, even as signs of slowing US economic growth complicate the central bank's policy choices.

Aamir Makda, Commodity & Currency Analyst at Choice Broking, noted that rising oil prices linked to regional tensions could keep inflation risks elevated. Higher fuel costs typically feed into transportation and manufacturing expenses, making policymakers reluctant to loosen monetary policy too quickly.