The US discount rate remained unchanged

The US Federal Reserve Monetary Commission left the policy rate unchanged at 3.75%, in line with analysts’ expectations.

The decision was made by a majority vote of 11:1.

In an official statement, the commission highlighted the uncertainty associated with the war against Iran, stating that “the consequences of events in the Middle East for the American economy remain unclear.”

At a press conference, Fed Chairman Jerome Powell indicated that “in the short term, higher energy prices will push inflation up, but it is too early to talk about the scale and duration of possible consequences for the economy.”

However, Powell conceded that the oil shock could be partially offset because the US is a net exporter of energy, and any negative impact on employment and spending would be partly mitigated by US oil companies becoming more profitable and possibly increasing production rates.

The current forecast is for the Fed to cut rates once in 2026 and again in 2027.