With the war in Iran and its impact on energy prices, the Federal Open Market Committee appears inclined to wait for more data before moving interest rates again.

Previously rates where seen edging lower in 2026 as inflation forecasts eased somewhat. The current spike in energy prices may change that narrative, since rising energy costs can impact prices throughout the economy. That’s because transportation is key to the provision of many goods and services, and energy is also an input to many products. The duration of any price spike is uncertain as military action in Iran continues.

Where Markets See Rates Going

Currently, interest rates are expected to most likely remain at their current level for 2026, according to fixed-income market forecasts captured by the CME FedWatch Tool. It is........

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