Global market analysts, economists, traders, and experts will be looking forward to the US Fed chair Powell’s speech today. Powell is set to deliver his remarks at the American Society for Public Administration (ASPA) Annual Conference: Paul A. Volcker Public Integrity Award Ceremony virtually, at 1:30 p.m ET on Saturday, March 21, 2026.
Throughout the course of the 2026 Annual Conference, ASPA will honor outstanding individuals and organizations serving the public.
Powell’s Remarks
High oil prices amid the Iran war are drawing attention to Powell’s action, with markets responding negatively to increasing tensions in the Middle East. The S&P 500 fell 1.5%, the Nasdaq 100 fell 2% to six-month lows, and the Dow Jones fell 0.96% to four-month lows on Friday, amid intensifying Middle East turmoil and rising energy prices.
This decline pushed the major averages into correction territory, while West Texas Intermediate futures rose further following news that Iraq declared force majeure over all oilfields. Sentiment worsened further as the Pentagon planned to deploy more Marines to the region.
Powell maintained interest rates steady during the March FOMC meeting rate cut announcement on March 18. But, there’s more to it. The central bank has not only refrained from reducing rates at its March FOMC meeting, but has also warned of surging inflation ahead.
Policymakers still forecast one cut in the federal funds rate this year and another in 2027, broadly consistent with the December projections, although the timing remains uncertain.
The updated ‘dot plot’ shows the central bank expects rates falling to 3.4% by year-end, suggesting at least one rate cut this year rather than two as projected earlier.
However, things may change quickly if the Iran war prolongs and oil prices remain high. Any strength in the US Dollar index may, by itself, disrupt the financials of many countries, including the US. The dollar index is hovering around 100, as concerns over persistent inflationary pressures intensified. Oil prices have also climbed after energy facilities in Iran had come under attack, adding to inflation worries.
The full inflation impact arising from the Iran war and the energy crisis will become clearer once the March US CPI and PPI data are released in April.
Paul A. Volcker
Paul A. Volcker Public Integrity Award will be awarded by Jerome Powell, Board of Governors, Federal Reserve System. This award will be recognized during the Opening Plenary and Elliot Richardson Lecture, Saturday, March 21 at 10:30 a.m. in Hollywood A-D. This award acknowledges an individual or organization that has made outstanding contributions to responsible conduct in public service. It is sponsored by the Volcker Alliance and supported by Ray and Barbara Dalio.
Paul A. Volcker was the Chairman, Board of Governors, 1979 – 1987 and has also served as President, Federal Reserve Bank of New York, 1975 – 1979. Following a sharp rise in inflation between 1978 and 1979, President Jimmy Carter shuffled his economic policy team and nominated Volcker to become chairman of the Board of Governors.
In his first term, Volcker focused on reducing inflation and conveying to the public that increased interest rates were the result of market pressures and not Board actions.
Volcker also served as the chairperson of President Obama’s Economic Recovery Advisory Board from 2009 to 2011. In that role, Volcker made a significant contribution to the Dodd-Frank Wall Street Reform and Consumer Protection Act by introducing the “Volcker Rule.”
The provision prohibits banking entities from engaging in proprietary trading in securities, derivatives, or certain other financial instruments and from investing in, sponsoring, or having certain relationships with a hedge fund or private equity fund.