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Iran War Risks Sharpening Fed Divisions Over Rate Cuts
A series of economic shocks splintered officials at the Federal Reserve last year and led to some of the most divisive votes on interest rates in the recent past. President Trump’s tariffs and immigration restrictions rekindled concerns about both inflation and the labor market, sparking a debate inside the central bank about which of the two to prioritize. A new shock stemming from the war in Iran now threatens to entrench officials in their previous postures. Sharper divisions risk compounding the challenge of reaching a consensus not only for Jerome H. Powell in his remaining months as Fed chair, but also for ... (full story)
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