Fed minutes crack door to further rate cuts amid Iran war

Some officials cautiously eyed a year-end rate cut, but others warned that upward adjustments might be needed if inflation remains above target levels.  

US Federal Reserve members were split on whether the war in the Middle East could spur further interest rate cuts before the end of 2026, according to minutes from the Federal Open Market Committee’s (FOMC) March meeting.

On Wednesday, the Fed released minutes from its last FOMC meeting on March 17 and 18. The meeting ended with an 11-1 vote to keep rates steady at 3.5% to 3.75%, with many officials cautious about the potential impacts of war and what it could mean for the economy.

Amid a risk of further conflicts, the official consensus pointed to a potential rate cut this year, but as Fed officials noted in the minutes, only if inflation does not get out of control.

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