Fed keeps rates on hold, Powell says he will remain in place until successor confirmed

New economic projections signal a tricky Federal Reserve path

<p>The Federal Reserve will almost certainly hold rates steady, but fresh economic projections and other communications due out Wednesday afternoon will show how the central bank is absorbing two uncomfortable realities at once.</p><p><strong>Why it matters: </strong>The energy shock from the Iran war adds a new factor to the Fed's complicated calculus. Inflation is running hotter than expected, even before the war's impact materializes in the data. Labor market data has been grim, and it's unclear how a sustained oil shock could weigh more heavily on the economy.</p><hr><ul><li>Whatever the projections show will set the table for Fed chair Jerome Powell's successor, Kevin Warsh.</li></ul><p><strong>What they're saying: </strong>"The new dot plot likely will indicate that most members retain a bias to ease policy this year and in 2027," Sam Tombs, chief U.S. economist at Pantheon Macro, wrote in a client note.</p><ul><li>But Tombs cautioned that "the biggest risk to markets" is if n...

The Federal Reserve is facing tough choices as the economy faces deep uncertainty

The Federal Reserve's job is expected to hold its benchmark interest rate steady as it faces inflationary pressure from the war with Iran — and a weakening labor market.

Live updates: Interest rates steady, Federal Reserve forecasts one rate cut in 2026 - Yahoo Finance

The Iran war is making it harder for Fed officials to cut interest rates

Some economists think the Fed, facing inflationary pressures from rising energy prices, may not cut interest rates at all this year.

Judge blocks DOJ subpoenas involving Fed Chair Jerome Powell

A federal judge blocked subpoenas issued by the Justice Department against Fed Chair Jerome Powell after determining the government "produced essentially zero evidence."

Judge quashes subpoenas in Justice Department's investigation of Fed chair Jerome Powell - AP News

<a href="https://news.google.com/rss/articles/CBMihwFBVV95cUxQcjZjTmFMcUo5TXI5UlpWNkRFRi1hQ0VyYjVWSndUemdHMW1tWVFoNThGYVh6REk5Q3k0YThMS2RCa3M0cDNSVlNVQTZ6SkpKS3JRTXIteDNYTUU5SC16NGNTRC1LcVJzOGJTVXV2WlY0RkVBdW1rYmJEVlBXdXNKWmhZQ1FPOU0?oc=5" target="_blank">Judge quashes subpoenas in Justice Department's investigation of Fed chair Jerome Powell</a>&nbsp;&nbsp;<font color="#6f6f6f">AP News</font>