Stocks fell near session lows on March 18, 2026, after Federal Reserve Chair Jerome Powell expressed concerns about inflation due to rising oil prices. The Dow Jones Industrial Average plummeted 769 points, or 1.6%, as Powell described the US economy as experiencing an “energy shock of some size and duration.” He also called service inflation “frustrating,” making a rate cut seem less likely.
Powell’s comments came ahead of his final press conference as chair, where he stated he wouldn’t leave the Fed’s board until the investigation into his Congressional testimony is complete. The benchmark federal-funds rate remained unchanged at 3.5-3.75%.
Rising energy prices and the ongoing war have driven oil prices up by 3.8% to $107.38 per barrel, fueling inflation concerns. Treasury yields rose after Powell’s remarks, with the 10-year yield increasing to 4.256%.
Source: https://www.wsj.com/livecoverage/fed-interest-rate-decision-inflation-03-18-2026