Overview
- The Federal Reserve, which met Wednesday, kept the federal funds rate at 3.50% to 3.75%.
- Policymakers lifted their 2026 inflation projection to 2.7%, reflecting higher energy costs from the Iran war.
- Jerome Powell’s term ends in mid‑May, and the Senate Banking Committee advanced Kevin Warsh as his successor, with a full Senate vote pending.
- The European Central Bank is expected Thursday to hold its deposit rate at 2.0% and has signaled June action is possible if energy‑driven inflation persists.
- Central banks cannot produce more oil, so they watch for wage and price feedback before tightening to avoid deeper damage to already weak growth.