Middle East conflict disrupts economic outlook, Fed expected to keep interest rates unchanged this week.

The market generally expects that Federal Reserve officials will keep interest rates unchanged at this week's meeting. At the same time, people are also paying attention to how the Fed may respond if the consequences of the Middle East conflict contradict its policy objectives. Aditya Bhave, senior economist at Bank of America, said, "Officials are likely to say they are still in a wait-and-see mode, as they closely monitor the rapidly evolving situation in the Middle East." Bhave commented on the surge in oil prices, saying, "They don't want to jump to conclusions. This is a supply shock. A supply shock will increase the execution risk of their mandate." In addition to the complex economic factors, this week's Fed meeting is also overshadowed by a tense and politically significant storm. Last week, a federal judge ruled to dismiss the subpoenas issued by the Department of Justice against Powell, but US prosecutors have vowed to continue their investigation into the Federal Reserve and its officials. This could disrupt the planned leadership transition at the Fed expected in May.