Fed Holds Steady as Economic Headwinds Intensify

The Federal Reserve maintained interest rates at their current levels on Wednesday, matching market expectations in its first move since the US-Israeli war with Iran sent gasoline prices soaring. The decision was made by a 11-1 vote, with Fed Chair Jerome Powell stating that elevated price increases have coincided with a slowdown of economic growth, threatening to intensify an economic double-whammy known as 'stagflation'.

The rate on the benchmark 10-year Treasury note stands at around 3.5% to 3.75%, significantly lower than its recent peak in 2023 but still above the 0% rate established at the onset of the COVID-19 pandemic. The Federal Reserve's decision comes after a lackluster jobs report last week showed the US economy lost 92,000 jobs in February, erasing most of the job gains recorded in 2026.