Fed Holds Rates Steady Amid Rising Oil and Hawkish Tilt
The Fed held rates steady as rising oil prices and hawkish dissent pressured bonds. Tech stocks remained resilient following strong earnings from Alphabet.
The United_States Federal Reserve held rates steady on Wednesday as three regional presidents dissented, signaling a hawkish shift toward higher-for-longer policy. It was the most divided Fed vote since 1992, driven by Brent oil hitting a four-year high of $125. Investors now see a 50% chance of a rate hike by April 2027 as inflation risks from the Iran war mount.
### Oil Spikes Force Central Bank Pivot Brent crude rose to $125 a barrel following the closure of the Strait of Hormuz. The Canada central bank and other global peers have raised inflation alarms as peace talks between the U.S. and Iran stalled. U.S. President Donald Trump is scheduled to be briefed on new military options on Thursday.
