As Federal Reserve officials gather for their two-day policy meeting this week, the oil shock from the Iran war could deepen divisions with the central bank over the path forward on interest rates.

Fed officials are divided on whether to prioritize controlling inflation or addressing the slowing job market.

A reading on the Federal Reserve's preferred inflation gauge released Friday for January, before the Iran war, showed inflation remained sticky, reinforcing the case for the central bank to hold interest rates steady for now.

Federal Reserve Bank of Boston President Susan ​Collins said on Friday she sees no looming need to change interest rates, with ‌the outlook for easing monetary policy contingent on a further retreat to the 2% inflation target.

The central bank cut rates at its three previous meetings in an effort to support the job market. But with inflation still elevated, the Fed is... Fed holds interest rates steady, taking a pause from rate cuts to assess the economy The Federal Reserve held ...

Trump is urging Fed Chair Jerome Powell to cut interest rates immediately, ahead of next week’s meeting, as inflation holds at 2.4%.

Overall prices increased by 2.4% in the 12 months through February 2026, meeting economist expectations and matching the January figure.

After the latest U.S. inflation reading on Wednesday, federal-funds futures indicated that the Federal Reserve may hold its benchmark interest rate steady until September. Traders in the fed-funds futures market were pricing in a 42.