War Expected To Worsen Inflation

WASHINGTON (AP) — Federal Reserve officials expect the Iran war will worsen inflation this year while having little impact on growth, but they still expect to cut their key rate once in 2026. For now, Fed policymakers left short-term interest rates unchanged Wednesday for the second straight meeting at about 3.6%. Fed Chair Jerome Powell said Wednesday that it’s too soon to predict the long-term impact of the Iran war on the U.S. economy. Powell also said he has “no intention” of leaving the central bank until a Justice Department investigation related to his testimony about a building renovation is over.