Federal Reserve Left Interest Rates Unchanged as Iran War Continues Indefinitely

“The implications of developments in the Middle East for the U.S. economy are uncertain,” the Federal Reserve wrote.

Jerome Powell

U.S. Federal Reserve Chairman Jerome Powell Sha Hanting/China News Service/VCG/ASSOCIATED PRESS

The Federal Reserve decided to leave interest rates as is on Wednesday, as the Iran war sends oil prices soaring and clouds the central bank’s goal of lowering rates this year.

“The implications of developments in the Middle East for the U.S. economy are uncertain,” the Federal Reserve wrote in a statement announcing its decision on Wednesday.

The Federal Reserve maintained rates at 3.5% to 3.75%. Despite economic activity “expanding at a solid pace,” the Fed cited low jobs gains and “somewhat elevated” inflation in its decision.