0623 GMT - Even before the events in the Gulf, the Fed was expected to stay on hold at this week's meeting and "this is now a certainty," Mediolanum International Funds' Daniel Loughney says. With recent economic releases showing continued slowing of inflation and a deterioration in the labour market, Mediolanum would have expected the hold to have been a dovish one. This will not be the case now, and "we expect the Fed to communicate a cautious wait and see approach," the head of fixed income says. The statement likely will comment on risks from the war and add two-sided language around the future path of rates, highlighting upside risks to inflation as well as downside risks to the labour market, he says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

March 18, 2026 02:23 ET (06:23 GMT)

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