Even before the Iran conflict began, Americans were antsy about rising prices with little relief in sight. On Sunday, Trump said on social media that oil price shocks from the Iran conflict was a “very small price to pay”. With this persistence in place, most Fed officials have staunchly resisted calls to lower interest rates, at the risk of bumping up inflation even more. The Fed often refers to its “dual mandate”: keeping inflation and unemployment low by manipulating interest rates. Higher interest rates slow the economy but cool prices, while lower interest rates can risk higher inflation.

Source: The Guardian March 12, 2026 03:40 UTC