US Federal Reserve rate hold sparks global market volatility

The US Federal Reserve kept its policy rate unchanged at 3.5%‑3.75% after a split vote, with members divided over future hikes. The decision heightened uncertainty in global markets. Commodity prices reacted sharply: Brent crude fell early in the week but rebounded after renewed attacks by Iran on Jordanian forces and strong statements from President Donald Trump that the United States would strike Iran hard. Gold and silver slipped amid a stronger dollar, while platinum and palladium posted gains. Agricultural futures dropped, led by wheat (‑5.9%), soybeans (‑5.2%) and corn (‑4.9%), as US winter harvest expectations and ample global supply pressured prices; cotton rose 2.1% and cocoa edged higher. Analysts linked the market turbulence to the Fed’s ambiguous stance, slower US growth, and volatile Middle‑East geopolitics.