Powell says oil shocks could be short, but may impact rate cuts

Federal Reserve Chair Jerome Powell recently signaled the central bank will likely hold interest rates steady despite the energy shock triggered by the war in Iran.

Speaking at Harvard University, Powell noted that while energy disruptions are typically short-lived, the Fed must remain vigilant, as years of above-target inflation have made rate cuts more challenging.

Powell’s term expires in May, yet the confirmation of his successor, Kevin Warsh, remains stalled in the Senate.

The Fed has maintained the federal interest rate between 3.5% and 3.75%.