Federal Reserve Chairman Jerome Powell indicated that the central bank is currently opting to maintain interest rates despite the energy shock caused by the Iran war. Speaking on Monday, Powell emphasized the Fed's preference for a measured approach, noting that while the immediate impact of rising oil prices can be overlooked, a shift in long-term inflation expectations could prompt a policy change. He highlighted the dual challenge posed by energy shocks, which can elevate prices and simultaneously suppress economic growth by straining household budgets and increasing business costs. Powell's remarks underscore the Fed's cautious stance as it navigates these economic pressures. He acknowledged the potential need for future action but stressed that the situation has not yet reached a critical point. This cautious approach aligns with recent signals from other Fed officials, suggesting that the threshold for rate cuts has risen, marking an end to the era of moderate rate reductions. This shift could complicate efforts by incoming Fed officials to implement rate cuts as anticipated by some political figures.