Fed Raises Inflation Outlook Amid Iran War Uncertainty

The US Federal Reserve maintained steady interest rates but increased its inflation forecast, citing an "uncertain" economic outlook influenced by the war in Iran. The decision to hold the benchmark lending rate was made with an 11-1 vote, aligning with market expectations despite US President Donald Trump's calls for a rate cut. This move reflects the Fed's cautious stance on monetary policy, acknowledging potential geopolitical impacts on economic stability and price levels. The updated outlook suggests ongoing vigilance regarding inflationary pressures.