Federal Reserve could signal no interest rate cuts this year in wake of Iran war - AP News

The Federal Reserve may signal it will hold interest rates steady throughout 2025 amid escalating tensions with Iran, according to reporting from AP News. The geopolitical crisis has injected new uncertainty into inflation and economic growth forecasts, complicating the Fed's calculus on rate policy after a year of cuts in 2024. A pause on cuts would represent a significant shift from market expectations and could have ripple effects across lending, borrowing costs, and consumer spending. The Fed typically adjusts policy based on inflation trends and employment data, but geopolitical shocks can force officials to reassess economic risks. The central bank's next policy signal will likely come at an upcoming meeting, where officials will lay out their economic projections and rate outlook.