0619 GMT - The Federal Reserve's rates outlook for the rest of the year will unsurprisingly be dominated by developments in the Middle East, Fidelity International's Max Stainton says in a note. In Fidelity's base case scenario of oil prices remaining elevated but rangebound at $90-$110 per barrel, "we would expect the Federal Reserve to remain on hold for longer, with the bar for near-term easing rising," the senior global macro strategist says. That said, this environment, on its own, isn't sufficient to drive a renewed tightening cycle, as the growth drag should remain manageable and the shock is likely to have a one-time price effect, rather than being broadly inflationary, he says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

March 19, 2026 02:19 ET (06:19 GMT)

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