Fed Still Forecasts Lower Interest Rates This Year Despite Iran Conflict

Officials say the war in Iran may affect the labor market or consumer spending.

Federal Reserve Chair Jerome Powell speaks at a news conference following the Federal Open Market Committee meeting in Washington on March 18, 2026. Madalina Kilroy/The Epoch Times

Federal Reserve officials anticipate lower interest rates this year, despite the Iranian conflict clouding the economic outlook, according to minutes from the March policy meeting.

Policymakers left interest rates unchanged at the March 17—18 meeting, keeping the target federal funds rate range between 3.5 percent and 3.75 percent.