US Federal Reserve Maintains Interest Rates Amid Middle East Tensions

The Federal Reserve is expected to maintain steady interest rates for the fourth consecutive meeting amid rising uncertainties from geopolitical tensions and President Donald Trump's tariff policies. The recent conflict between Israel and Iran has driven oil prices higher, raising concerns about inflation risks and potential disruptions to global oil supplies through the Strait of Hormuz. Despite Trump's calls for significant rate cuts to reduce debt costs, Fed officials, including Chair Jerome Powell, have emphasized the need to monitor inflation and unemployment closely before making changes. The tariffs imposed by the Trump administration have begun affecting the economy, but their full impact on consumer prices is anticipated to take several months. While the U.S. economy remains generally healthy, the Fed is adopting a cautious approach to balance risks from trade disputes, geopolitical instability, and inflationary pressures. Investors and economists await the Fed's upcoming statement and Powell's commentary for further guidance on the economic outlook and potential future policy moves.