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US-Iran War: Fed Keeps Rates on Hold, with One Dissenter | World Business Watch

The US Federal Reserve has kept interest rates on hold, even as rising geopolitical tensions linked to the Iran war complicate its economic outlook. The central bank continues to project 0.25 percent rate cuts in both 2026 and 2027, balancing inflation risks driven by higher energy prices against a cooling labour market. With oil prices rising and global uncertainty increasing, policymakers face a more complex path as they attempt to manage inflation without weakening growth further.