Morning Business Report: Fed holds rates steady as stocks drop, tax scams rise ahead of April deadline

The Federal Reserve is holding interest rates steady, even as economic uncertainty grows.

(LILAMAX)- The Federal Reserve is holding interest rates steady, even as economic uncertainty grows following rising global tensions and higher gas prices linked to the conflict involving Iran.

At its first meeting since the escalation, Federal Reserve Chair Jerome Powell said the impact of developments in the Middle East on the U.S. economy remains unclear.

Following Powell’s remarks, markets reacted sharply. The Dow Jones Industrial Average dropped 768 points, marking its lowest close of the year. Analysts say a hotter-than-expected inflation report added to the market’s decline.

Meanwhile, there is some relief for renters. New data shows the national median asking rent dropped in February to its lowest level in four years. Realtor.com reports rent prices have now declined for 30 consecutive months across the 50 largest metro areas, with the median rent sitting at $1,667 — down more than 5% from its peak in 2022.

However, the broader economy continues to feel pressure from the ongoing Department of Homeland Security shutdown. White House economists estimate the shutdown has already cost the U.S. economy $2.5 billion, not including additional ripple effects. That comes on top of a $90 billion loss from last year’s broader government shutdown.

As tax season enters its final stretch, the Internal Revenue Service is also warning Americans about a rise in scams ahead of the April 15 filing deadline.

Officials say scammers are becoming more sophisticated — using personal information and even artificial intelligence to mimic legitimate IRS communications, making it harder for taxpayers to detect fraud.

Experts are urging people to stay cautious, verify sources, and avoid sharing sensitive information.