Review: FOMC Keeps Rates Unchanged,US War-Related Uncertainty Looms Large

In this paper, we discuss:

• The Fed kept interest rates unchanged, maintaining a data-dependent, meeting-by-meeting approach;
• Policymakers face a difficult trade-off between weakening labor market conditions and rising inflation risks;
• The Iran conflict is adding inflationary pressure via higher oil prices while weighing on growth;
• Expectations for rate cuts have been scaled back, with limited easing projected in the coming years;
• Overall economic uncertainty remains elevated, complicating the Fed’s policy path.

Download PDF: Fed Review – March 2026