Washington —
The US-Israeli war with Iran, now stretching into its third week, is dashing hopes that the Federal Reserve will lower interest rates at all this year.
The war has sparked the biggest disruption to oil supply in history, sending energy prices higher and threatening to jack up the cost of nearly everything Americans buy. At the same, investors and Fed officials are still waiting to see the full effects of President Donald Trump’s tariffs on inflation.
Already, the central bank forecasts only one quarter-point rate cut this year — and new projections