U.S. Fed holds key rate steady amid concerns over Iran war impact on oil prices, inflation | Yonhap News Agency

## Summary
Federal Reserve left its benchmark interest rate unchanged for the second consecutive time on Wednesday, amid rising concerns over the impact of the ongoing U.S.-Israeli war against Iran on oil prices and inflation. This photo, released by the Associated Press, shows Fed Chair Jerome Powell speaking during a news conference at the Federal Reserve Board Building in Washington on Jan. 28, 2026. (Yonhap) sshluck@yna.co.kr (END) Keywords #FOMC Articles with issue keywords Most Liked 16th Gwangju Biennale: You must change your life Ex-U.S. officials voice concerns about Trump gov't 'vacating' deterrence assets from Indo-Pacific amid Iran war Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms Police vow zero tolerance for terror threats against BTS comeback concert (2nd LD) N. Fed holds key rate steady amid concerns over Iran war impact on oil prices, inflation Next U.S. Fed holds key rate steady amid concerns over Iran war impact on oil prices, inflation

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By Song Sang-ho
WASHINGTON, March 18 (Yonhap) -- The U.S. Federal Reserve left its benchmark interest rate unchanged for the second consecutive time on Wednesday, amid rising concerns over the impact of the ongoing U.S.-Israeli war against Iran on oil prices and inflation.
During the two-day Federal Open Market Committee (FOMC) meeting, the central bank decided to leave the rate unchanged at the 3.5-3.75 percent range. The pause put the gap between the key rates of South Korea and the United States at up to 1.25 percentage points.
According to FOMC members' new median economic projection, the federal funds rate is expected to be cut to 3.4 percent at the end of this year -- the same as the December forecast, signaling the possibility of a quarter percentage point cut this year.
The Fed's decision to stand pat came as the central bank faced a tough rate-setting decision due to rising oil prices and its potential impact on inflation, and a weak U.S. employment report, which showed a loss of 92,000 jobs last month.
This photo, released by the Associated Press, shows Fed Chair Jerome Powell speaking during a news conference at the Federal Reserve Board Building in Washington on Jan. 28, 2026. (Yonhap)
sshluck@yna.co.kr
(END)
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U.S. Fed holds key rate steady amid concerns over Iran war impact on oil prices, inflation

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## Expert Analysis

### Merits
N/A

### Areas for Consideration
- The pause put the gap between the key rates of South Korea and the United States at up to 1.25 percentage points.
- This photo, released by the Associated Press, shows Fed Chair Jerome Powell speaking during a news conference at the Federal Reserve Board Building in Washington on Jan. 28, 2026. (Yonhap) sshluck@yna.co.kr (END) Keywords #FOMC Articles with issue keywords Most Liked 16th Gwangju Biennale: You must change your life Ex-U.S. officials voice concerns about Trump gov't 'vacating' deterrence assets from Indo-Pacific amid Iran war Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms Police vow zero tolerance for terror threats against BTS comeback concert (2nd LD) N.

### Implications
- Federal Reserve left its benchmark interest rate unchanged for the second consecutive time on Wednesday, amid rising concerns over the impact of the ongoing U.S.-Israeli war against Iran on oil prices and inflation.
- According to FOMC members' new median economic projection, the federal funds rate is expected to be cut to 3.4 percent at the end of this year -- the same as the December forecast, signaling the possibility of a quarter percentage point cut this year.
- The Fed's decision to stand pat came as the central bank faced a tough rate-setting decision due to rising oil prices and its potential impact on inflation, and a weak U.S. employment report, which showed a loss of 92,000 jobs last month.
- This photo, released by the Associated Press, shows Fed Chair Jerome Powell speaking during a news conference at the Federal Reserve Board Building in Washington on Jan. 28, 2026. (Yonhap) sshluck@yna.co.kr (END) Keywords #FOMC Articles with issue keywords Most Liked 16th Gwangju Biennale: You must change your life Ex-U.S. officials voice concerns about Trump gov't 'vacating' deterrence assets from Indo-Pacific amid Iran war Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms Police vow zero tolerance for terror threats against BTS comeback concert (2nd LD) N.

### Expert Commentary
This article covers korea, war, rate topics. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 493.