Fed Opens March Policy Meeting With Iran Conflict Clouding the Outlook

The Federal Reserve opened its two-day policy meeting on Mar. 17, and Wall Street overwhelmingly expects the central bank to leave interest rates unchanged. At the January meeting of the policy-making Federal Open Market Committee, Fed officials left the benchmark federal funds rate—a policy rate that influences borrowing costs for businesses and households—unchanged at a range of 3.50–3.75 percent. Officials likely will wrestle with the economic fallout of the war in Iran, along with other threats to the institution’s dual mandate of maximum employment and price stability. Prior to the conflict in Tehran, the primary discussion among policymakers was how far away the Fed was from the neutral rate....