Closing Bell Closing Bell: Stocks Sink Following Fed Decision to Leave Rates Unchanged 3/18/26
Mar 18, 2026
Pippa Stevens, CNBC energy reporter tracking oil and LNG moves. Stephanie Guild from Robinhood on retail trading shifts and sector bets. Steve Leisman, senior economics reporter, on Fed press dynamics. Joe Lavorgna, CMBC Americas chief economist, on growth versus inflation risks. Jeremy Siegel, Wharton professor, on Fed policy and long-term growth. They discuss market reaction to the Fed hold, Powell’s remarks, yields, sector flows and mortgage refinance pressure.
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Powell Comments Plus Oil Spike Push Markets Lower
- Markets dropped as Powell signaled no immediate cuts and uncertainty about geopolitical-driven oil shocks increased downside risk.
- Stocks fell during Powell's remarks with the Dow swinging ~200 points then plunging to session lows amid rising Treasury yields.
Powell Staying On Raises Yield And Cuts Uncertainty
- Jeremy Siegel highlighted the Fed's focus on consumer inflation expectations and uncertainty from an energy shock as central to policy choices.
- He noted Powell's comment about staying on the Fed board could influence expectations for future cuts and pushed yields higher.
Oil Shock Makes Fed More Cautious On Cuts
- Joe Lavorgna said the Middle East energy shock changed the Fed's calculus from cutting to caution due to potential hit to real incomes.
- He argued higher oil could damp growth and make the Fed avoid repeating past easing mistakes.