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The Federal Reserve held borrowing costs steady at its latest meeting, defying market pressure to raise rates at exactly the moment a war in Iran threatens to push inflation higher.
Both forces were present at the same time. The Fed chose to sit still anyway, and that choice now carries more weight than it might have in a quieter week.
What the Fed walked into Markets were pushing for higher borrowing costs going into what was by any measure a high-stakes gathering.
The Iran conflict added another layer: war carries inflation risk, particularly through the channels that matter most to a central bank still working to establish credibility on price stability.
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