The Fed is likely to hold rates steady with volatile oil prices and poor US jobs performance

The Federal Reserve will announce its March interest rate decision on Wednesday and the FOMC is likely to hold policy rates steady. Geopolitical escalation in Iran has sent oil markets into chaos, increasing volatility and reducing near-term impetus for a Fed rate move. Markets will be highly sensitive to the Fed statement and further oil-price developments.

Analysis

The Federal Reserve will announce its March interest rate decision on Wednesday and the FOMC is likely to hold policy rates steady. Geopolitical escalation in Iran has sent oil markets into chaos, increasing volatility and reducing near-term impetus for a Fed rate move. Markets will be highly sensitive to the Fed statement and further oil-price developments.