Economists warn the Iran war could fuel inflation and slow growth, putting the Fed in a bind as oil prices rise and recession risks build.

WASHINGTON, April 15 (Reuters) - High oil prices are likely to keep underlying inflation nearly a percentage point above the Federal Reserve's 2% target for the rest of this year, with the U.S. central bank likely needing to leave interest rates unchanged,

Fed officials are expected to keep the central bank's key interest rate steady as they wait and see how the Iran war affects inflation and the job market.

The central bank official advocated a patient approach as officials watch incoming data for clues about where the U.S. economy is heading.

U.S. businesses and households still adjusting to the Trump administration's tariff policies also are reeling from a surge in energy prices due to the Iran war, a Federal Reserve report showed on Wednesday,

Warsh's wealth far outstrips that of outgoing Fed Chair Jerome Powell, whose most recent disclosure shows he is worth at least $19.5 million.

Jerome H. Powell’s term as chair of the Federal Reserve ends on May 15, but it appears increasingly likely that he will stay on in some capacity at the central bank after that.

Using Open Market Operations, the Fed embarked on a series of Large-Scale Asset Purchases, more commonly known as Quantitative Easing (QE), to try to stimulate the economy and add liquidity to the system. This resulted in a massive expansion of their balance sheet.