Tensions in the Middle East are escalating as Iran’s Supreme Leader, Ayatollah Ali Khamenei, issued a strong warning to the United States. He declared that any US military involvement alongside Israel in attacks on Iranian targets would result in “irreparable harm.” This defiant stance comes in direct response to President Donald Trump’s recent post on Truth Social, where he claimed knowledge of Khamenei’s location and implied a potential target, while simultaneously asserting his safety for the time being.

Meanwhile, across the globe, the Federal Reserve is poised to maintain interest rates at their current level (4.25 percent to 4.50 percent range, set in December). This decision comes as policymakers carefully weigh the impact of a slowing US economy, the potential inflationary pressures from US import tariffs, and the rapidly unfolding crisis in the Middle East. The delicate balancing act between economic stability and geopolitical uncertainty is clearly at the forefront of the Fed’s considerations.