At 2 p.m., the Federal Open Market Committee of the Federal Reserve Board will release its statement on monetary policy. The committee will keep the federal funds target range unchanged at 3.50%–3.75%. The fed funds rate is a key interest rate tool of the committee.

Further, the committee will continue to signal that additional interest rate cuts will be limited to at most one additional cut this year. It will also emphasize that it requires “greater confidence” that inflation is moving toward the Federal Reserve’s 2% inflation target. The FOMC will state that it is watching closely how the United States economy reacts to its fourth supply shock in five years. The economy has experienced the effects of the reopening following the COVID-19 pandemic, Russia’s invasion of Ukraine, the tariffs of President Donald Trump, and now the oil spike caused by the Iran war. The committee is concerned about the cumulative effect of these supply shocks, which have caused inflation to remain well above the 2% target.