CA, US & World
Fed’s Next Move Hinges on Inflation Fears as Iran War Drives Up Prices
The Federal Reserve’s next move on interest rates may depend heavily on how Americans feel about inflation as the conflict with Iran continues to impact global markets.
Jerome Powell said the central bank is closely watching inflation expectations, noting they are a key factor in determining how the Fed responds to rising prices.
The ongoing war has driven up oil prices, with global benchmarks briefly climbing above $116 per barrel. The conflict has also disrupted activity in the Strait of Hormuz, a critical channel for energy supplies, pushing up costs for gas, plastics, and fertilizers.
Those rising costs are beginning to weigh on Americans. Consumer sentiment has dropped, while short-term inflation expectations have increased, raising concerns about the broader economic outlook.
Powell suggested the Fed may hold interest rates steady for now, noting that policy changes take time to impact the economy and that energy shocks can be temporary.
However, the situation remains uncertain. If inflation continues to climb or expectations worsen, analysts say the Fed could be forced to reconsider its approach, including the possibility of raising rates instead of cutting them.
The central bank is also balancing concerns about a fragile labor market, making its decision even more complex as the conflict continues.
Powell acknowledged the unpredictability of the situation, saying the ultimate economic impact will depend on how long the conflict lasts and how far it spreads.
Explore: NBCPalmSprings.com, where we are connecting the Valley.
By: CNN Newsource
March 30, 2026
Latest Instagram Posts
The Greater Coachella Valley Chamber of Commerce is holding three city council candidate forums ahead of the November Election. Be sure to visit nbcpalmsprings.com to hear from the President of the Chamber of Commerce who breaks down what residents should know about what they can expect from these forums. #coachellavalley #elections2026 #localnews #citycouncil #candidateforum
Small mistake or a matter of transparency? What’s your take? Drop a comment below 👇 #therogginreport #coachellavalley #desertrecreationdistrict #localnews #nbcpalmsprings
Engineering students craft a robot that takes down a 4x4 Rubik's Cube in less than 10-seconds.
Watch a gargantuan, 5.7-mile-long train nab a world record as it disappears over the horizon!
☕️ Social Time with Thalia & Jerry. Do you do yoga?
When we took a closer look at the Desert Recreation District, the numbers and details just didn’t line up. What are your thoughts on this? Drop your take in the comments👇 #therogginreport #coachellavalley #localnews #desertrecreationdistrict #nbcpalmsprings
Your face may reveal more than you think. Researchers developed AI that analyzes facial photos for clues about biological age and cancer survival. Potentially a future tool to help doctors? 🥼
Social Time with Thalia & Jerry. Giveaway: 3-4 minutes of air time on Talking with Thalia!
🧛♂️ The Count is in the Coachella Valley! Kevin Mann is back with a new Mann on the Aisle review teaser, taking a bite out of Dracula at Revolution Stage Company! 🩸🎭 Will this production leave him spellbound or thirsty for more? Stay tuned for the full review! #MannOnTheAisle #Dracula #RevolutionStageCompany #TheatreReview #CoachellaValley #NBCPalmSprings
Independent journalists and political operatives are churning out viral clips from the 2026 campaign trail. Sometimes, these clips are sorely out of context, yet they’re driving the midterms conversation. CNN’s Marshall Cohen dives into this phenomenon and speaks with a prominent clipper about the industry.