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Borrowing costs in the United States hit a 19-year high, and the Federal Reserve chose to hold its policy rate in place as investors grew increasingly worried that President Trump's Iran war could deliver a fresh inflationary shock.
The central bank stood pat, leaving open a question the rate decision itself did not answer: whether a geopolitical conflict with direct energy-price exposure will eventually force a policy response.
The hold at a generational peak Nineteen years is a long span.
That the Fed arrives at this level and holds, rather than moving in either direction, signals the central bank views the current rate as appropriate, at least until the data shift.
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