The Federal Reserve will almost certainly hold rates steady, but fresh economic projections and other communications due out Wednesday afternoon will show how the central bank is absorbing two uncomfortable realities at once.
Why it matters: The energy shock from the Iran war adds a new factor to the Fed's complicated calculus. Inflation is running hotter than expected, even before the war's impact materializes in the data. Labor market data has been grim, and it's unclear how a sustained oil shock could weigh more heavily on the economy.
