Volatility in global energy markets, caused by the war with Iran in the Middle East, may complicate the Fed's plans to lower interest rates. Rising oil and natural gas prices, creating additional pressure on inflation, significantly weakened expectations for interest rate cuts. Economists expect the Fed will keep interest rates unchanged at its March 18 meeting. However, many analysts previously forecasted the first rate cut in June. The war with Iran, which quickly led to rising energy prices, forced a revision of these forecasts. According to Wall Street analysts, rising energy prices could lead to price increases in many areas, including transportation, food, and utilities. This situation presents the Fed with a difficult task. On one hand, the central bank is trying to reduce inflation to its target level of 2% annually, while on the other hand, it needs to support the labor market, which is showing signs of slowdown. The Personal Consumption Expenditures (PCE) index, one of the most closely tracked inflation indicators by the Fed, published on March 13, showed that prices continued to rise in January. Notably, this increase occurred before the full impact of the war with Iran was felt on energy markets.