Oppenheimer expects the Federal Reserve to hold rates steady at this week's FOMC meeting

LootboxPhobia · 2026-03-16T21:01:40+00:00

Oppenheimer expects the Federal Reserve to maintain interest rates unchanged at the FOMC meeting, assessing the impact of Middle East conflict and inflation on the economy. The Middle East war brings uncertainty to the market, with crude oil prices rising due to supply concerns over the Strait of Hormuz. Despite strong S&P 500 earnings performance and stable inflation data, the market remains under pressure from war and surging oil prices.

LootboxPhobia

2026-03-16 21:01:40

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Investing.com – Oppenheimer expects the Federal Reserve to keep interest rates unchanged at this week’s FOMC meeting, as policymakers assess the impact of Middle East conflicts and ongoing inflation on the economy.

Oppenheimer stated that the Middle East war over the past two weeks has brought uncertainty to global markets, and this is expected to remain a major concern for the near-term outlook.

From late February to March 13, oil prices surged 47%, mainly driven by disruptions in the Strait of Hormuz, a key shipping route. About 20% of the world’s oil and liquefied natural gas are transported through this waterway. Iran’s threat to block the Persian Gulf has heightened supply concerns.

Last week, driven by safe-haven capital flows, the trade-weighted dollar index rose 1.1%. U.S. bond prices fell sharply due to inflation worries, with the 10-year Treasury yield rising 14 basis points to 4.28%.

The Q4 earnings season for the S&P 500 is nearing its end, with strong performance. All but three companies have reported results, with profit growth reaching 13.6% and revenue increasing 9.2%, providing support.

Latest inflation data shows price pressures remain roughly stable. February’s Consumer Price Index and January’s PCE deflator indicate that inflation has neither accelerated nor decelerated.

As the conflict with Iran enters its third week, markets remain under pressure, with ongoing concerns about war and shipping disruptions causing oil prices to spike.

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