The Federal Reserve kept the benchmark federal-funds rate at 3.5–3.75% Wednesday, with 12 of 19 officials projecting at least one cut this year, unchanged from December. Officials cited uncertainty from the Iran war, which has pushed energy prices higher, threatening to prolong inflation. Core PCE inflation rose to 3.1% in January. William English, former senior Fed economist, called the situation “terrible,” noting another shock after last year’s inflationary surge. The labor market shows soft

The Federal Reserve kept the benchmark federal-funds rate at 3.5–3.75% Wednesday, with 12 of 19 officials projecting at least one cut this year, unchanged from December. Officials cited uncertainty from the Iran war, which has pushed energy prices higher, threatening to prolong inflation. Core PCE inflation rose to 3.1% in January. William English, former senior Fed economist, called the situation “terrible,” noting another shock after last year’s inflationary surge. The labor market shows soft job growth, with unemployment at 4.4%, complicating the Fed’s policy path ahead of Powell’s May term expiration.