US holds interest rates as Iran war triggers inflation fears

The US Federal Reserve decided to hold interest rates steady, remaining in the 3.5%-3.75% range. This decision comes amid rising economic uncertainty and inflation fears triggered by the US-Israel war with Iran and the subsequent spike in oil prices. While a majority of Fed board members still anticipate at least one rate cut this year, Chairman Jerome Powell stated that future cuts depend on inflation trends, noting it's "too soon" to assess the war's impact. The Fed now expects inflation to end the year at 2.7%, higher than previously predicted due to the "oil shock" and lingering effects of tariffs. Despite these concerns, the board forecasts economic growth of 2.4% and a steady unemployment rate of 4.4%.

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