Fed Finds Economic Uncertainty From Iran War
Source: U.S. News & World Report
April 15, 2026, at 4:00 p.m.
The Federal Reserve saw an economy that was moderately growing in April but also dealing with the higher prices brought on by import tariffs and the war between the U.S. and Iran. It was the latter that left firms cautious on hiring and investment, with the Fed’s “beige book” survey of its 12 regional districts showing that “business outlooks varied amid widespread uncertainty about future conditions.”
But overall, “the conflict in the Middle East was cited as a major source of uncertainty that complicated decision-making around hiring, pricing, and capital investment, with many firms adopting a wait-and-see posture.”
The release of the survey comes as President Donald Trump is once again threatening to fire Fed Chairman Jerome Powell, whose term leading the central bank ends in mid-May. However, Powell has said he will not step aside – his term as governor continues beyond this year – as long as a new chairman is not sworn in and a Justice Department probe into spending on renovations at the Fed’s headquarters continues.
Powell has said that without a new chairman, he would continue to serve as a temporary chairman but has refused to say whether he plans to stay on at the Fed as a governor until that term ends. It is also unclear what Trump aims to gain from threatening Powell again, as his push for lower interest rates seems stalled with only one Fed official, Trump appointee Stephen Miran, firmly in the camp for lowering rates.
Read more: https://www.usnews.com/news/national-news/articles/2026-04-15/fed-finds-economic-uncertainty-from-iran-war
Link to Federal Reserve Beige Book REPORT (PDF) - https://www.federalreserve.gov/monetarypolicy/files/BeigeBook_20260415.pdf