WNBA Quintuples Players’ Salaries & Energy Prices Spike as Fed Holds Rates Steady

The Morning Brew Daily episode covers a range of news, led by the Federal Reserve's decision to hold interest rates steady amid spiking energy prices from Middle East attacks, alongside a landmark WNBA labor deal boosting player pay and emerging trends like peptides in health optimization.

Fed Stays Put Amid Energy Shocks and Weakening Economy

The Fed voted 11-1 to keep its benchmark rate unchanged, marking the second straight meeting without adjustment. Chair Jerome Powell described the economic fallout from the war between Israel and Iran as uncertain, noting higher energy prices would lift inflation short-term but effects' scope and duration remain unknown. The central bank typically ignores temporary oil shocks, as they offset growth hits with inflation boosts, so Powell plans to monitor without immediate action.

Pre-war data already showed headwinds: February shed 92,000 jobs, with private-sector growth flat over the past year after revisions and unemployment edging up due to a shrinking labor force. Inflation ticked higher too, with producer prices up 0.7% in February before energy surges. The dot plot still projects one rate cut this year, though without post-war data. Powell, facing an HQ renovation probe, will stay on as a governor until resolved and resume chair duties if Trump's nominee Kevin Warsh isn't confirmed by June.