Middle East War Pushes Up Energy Prices; Fed Rates Expected to Remain Unchanged

CENTRAL MESSAGE

(Washington, April 26, Central News Agency) Due to the Middle East war leading to persistently high energy prices and ongoing supply chain disruptions, the U.S. Federal Reserve (Fed) is expected to maintain interest rates unchanged at its policy meeting this week.

According to Agence France-Presse, this two-day interest rate decision meeting, starting on the 28th, may be the last one chaired by Fed Chairman Jerome Powell during his tenure. Powell's term will expire on May 15th. He will hold a press conference on the 29th, with the public highly anticipating his next moves.

This meeting takes place against a complex backdrop. The nomination process for Powell's successor has been fraught with twists and turns, coupled with rising fuel prices fueling inflation and lingering concerns about the job market, as policymakers strive for balance.

Fed officials are expected to keep the federal funds rate in the range of 3.50% to 3.75%, continuing the policy of inaction since the beginning of this year.

Kenneth Kim, Senior Economist at KPMG, told Agence France-Presse: "There is still great uncertainty in the Middle East situation. Even if oil and gasoline prices have peaked, they remain high, which means the impact of energy prices indeed affects consumers and businesses."

He pointed out that strong recent job growth "gives the Fed some buffer," allowing it to temporarily focus more on prices.

Due to soaring energy costs, the U.S. Consumer Price Index (CPI) rose by 3.3% year-on-year in March, reaching a new high in nearly two years.

Analysts will also closely watch whether the Fed's post-meeting statement signals a possibility of further rate hikes. (Translators: Gao Zhaofen / Reviewer: Xu Chongzhe) 1150426

Choose to stand with facts, every sponsorship you make is a force to protect press freedom.

Download the Central News Agency's "First-hand News" APP to stay updated instantly.

The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.