The United States' Federal Reserve has decided to keep interest rates unchanged at 3.5%-3.75%. This decision is based on the prevailing economic uncertainty and increasing inflationary pressures stemming from the US-Israel war with Iran. However, the Fed is taking a cautious stance in response to President Trump's demand that interest rates be lowered. This is because oil and gas prices have risen to their highest since 2024. Although the Fed is hopeful that it may be able to lower interest rates at least once this year, it has increased its 2026 inflation estimate to 2.7%. This is a "wait and see" policy in response to the challenge of keeping interest rates low in an environment where increasing oil and gas prices are raising the cost of living and, at the same time, may slow down the economy as people spend less.