Powell May Be Leaving The Fed — But The Real Problem Is Just Arriving

Later today, Federal Reserve Chair Jerome Powell will hold what is probably the final meeting of his tenure. Yet, with the federal funds rate at 3.5%–3.75%, the final curveball isn’t the pressure from Washington, but a genuine stagflationary dilemma that leaves the central bank with no room to move.
Fed entered 2026 flirting with a rate cut down the road. The U.S. dollar sank, precious metals surged, and equities kept above the water, hoping that the "wait-and-see" approach eases or succumbs to Washington.
Yet, that hope dispersed once the war with Iran drove renewed cost-side inflation. The World Bank has warned of a 24% surge in energy prices this year—the largest in four years—driven by the ongoing conflict in the Middle East and by severe supply shocks from the closure of the Strait of