Fed Holds Rates Steady Amid Ongoing US-Iran Tensions

The Federal Reserve kept its benchmark interest rates steady at 3.50% - 3.75% in its April 2026 policy meeting, as expected by markets.

Jerome Powell's tenure as Fed chair ends on May 15, but he will continue to serve as a member of the central bank's Board of Governors until January 2028.

Powell said he sees the economic outlook as 'highly uncertain' due to elevated oil prices caused by the ongoing U.S.-Iran war, which could affect GDP growth.

The market is now pricing in an 85% chance that the central bank won't move rates at all for the rest of 2026, according to the CME FedWatch Tool.