The Fed is staring down an inflation problem that arguably preceded the Iran war but now an oil shock looks likely to make it worse, ultimately shrinking the path for rate cuts. Jerome Powell acknowledged during his press conference that policymakers haven’t made as much progress on prices as they’d hoped.

In a press conference following the outcome of the FOMC meeting, Fed Chair Jerome Powell reiterated the uncertainty the war creates ​for the outlook.

The Federal Reserve left its benchmark interest rate unchanged on Wednesday, citing economic uncertainty, including potential impacts from the war in Iran. CBS News coordinating producer Richard Escobedo has the details.

Federal Reserve keeps interest rates unchanged

The Federal Reserve held its benchmark interest rate steady as it faces inflationary pressure from the war with Iran — and a weakening labor market.

The Fed held interest rates steady, while the Persian Gulf conflict threatens to reignite inflation, complicating the Fed’s work.

U.S. stocks slumped after a report said inflation was primed to worsen even before the war with Iran sent oil prices spiking. That and comments from the head of the Federal Reserve pushed Wall Street on Wednesday to see less chance of getting the lower interest rates that it loves.

The Federal Reserve held rates steady Wednesday for the second meeting in a row as the war in Iran clouds an already murky economic picture. In its statement, the Fed acknowledged the war, but kept its language cautious,