Fed Minutes Reveal Divergent Rate Cut Expectations Amid Middle East Tensions
• The Federal Open Market Committee met on March 17–18, 2026, noting uncertainty in the economic outlook with options markets pricing a 30% probability of rate hikes early next year. • Broad equity indexes declined sharply while S&P 500 one-month volatility rose, driven by investor concerns over Middle East developments weakening confidence. • Financing conditions stayed restrictive for households, small businesses, and commercial real estate due to high costs and tight underwriting, though corporate debt spreads remained narrow.
federalreserve.gov