Overview
- Policymakers held the federal funds rate at 3.50%–3.75% and warned the economic effects of the Middle East conflict are uncertain, keeping guidance consistent with only one rate cut in 2026.
- U.S. markets sold off after the decision, with the Dow down 1.63%, the S&P 500 off 1.36% and the Nasdaq lower by 1.46%, while the dollar index climbed to about 100.30.
- Oil stayed elevated as energy infrastructure attacks and a practical closure of the Strait of Hormuz constrained supply, lifting WTI to roughly $96 and keeping Brent above $100 a barrel.
- Mexico’s peso weakened after the Fed announcement to 17.8265 per dollar, having traded between 17.60 and 17.88; the Diario Oficial reference stood at 17.69.
- Peru’s sol closed at S/3.4425 after an intraday rise, and Argentina’s official retail dollar ended at ARS 1,415 with the blue at ARS 1,435 as BCRA reserves fell $226 million to $44.495 billion, marking a sixth straight decline.