FOMC maintains rates amid high level of uncertainty due to Middle East conflict

The Federal Open Market Committee (FOMC) maintained the federal funds rate target range at 3.5% to 3.75% Wednesday, following its meeting. According to the committee, “developments in the Middle East are contributing to a high level of uncertainty about the economic outlook,” and as a result the committee remains attentive to the risks to both sides of its dual mandate. This meeting also marks Jerome Powell’s last as chair of the Federal Reserve Board of Governors. His term expires May 15.

“The FOMC held rates steady amidst a backdrop of stable economic activity and volatile energy prices. There were four dissents, one favoring a rate cut and three preferring more hawkish language in the statement. Incoming chair Warsh inherits a committee with deepening divisions and growing inflationary concerns,” said America's Credit Unions Chief Economist Curt Long. “Elevated borrowing costs are one more factor weighing on affordability, but credit unions are doing their part to ease those pressures. In 2025 alone, they provided over $42 billion in financial benefits to everyday Americans by offering the best rates and lowest fees in the financial services sector.”