Fed Tied to Geopolitics: Interest Rates Held Amid Middle East Uncertainty

The Federal Reserve's decision to hold interest rates steady at 3.5% to 3.75% has been influenced by the ongoing conflict in the Middle East, according to Nigel Green, CEO of deVere Group.

The move came hours after Iran fired missiles at American forces and oil prices surged, with Brent crude and West Texas Intermediate both increasing in value.

Nigel Green notes that this decision is a departure from the traditional approach of setting policy based on jobs numbers and inflation prints. 'The Fed used to set policy based on jobs numbers and inflation prints. Now, they're setting it based on missile strikes and oil futures,' he said.

This shift has significant implications for households and businesses, as their financial plans are now exposed to a source of volatility that is unrelated to the domestic economy.