NYSE:ERIC 3 July 2025

May 3, 2026, 9:05 AM EDT. Federal Reserve Chair Jerome Powell warned that the economic outlook remains highly uncertain due to the conflict in the Middle East, which is driving energy price shocks. Powell said higher energy costs will increase inflation near term, complicating the Federal Reserve's path on interest rates. The Federal Open Market Committee has held rates steady through three meetings, as risks from inflation persist. JPMorgan Chase economists now expect rates to stay steady through 2026, with hikes possible in 2027. Despite a recent dip, the S&P 500 trades at a premium of 20.9 times forward earnings, above the five-year average, reflecting vulnerability if inflation rises further or rate hikes resume. Powell's statements signal ongoing market risks tied to energy-driven inflation rather than a smooth return to easier monetary policy.