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This Marketplace Friday episode recaps key economic developments amid Middle East tensions, including a Federal Reserve meeting, inflation data, oil shocks, and housing notes, alongside updates on health insurance, labor trends, retail fads, and workplace dynamics.

Fed Focuses on Inflation Amid War Uncertainties

Federal Reserve Chair Jerome Powell stressed the need for clear progress on inflation toward the 2% target before addressing potential pressures from the ongoing Middle East conflict, particularly energy shocks. Speaking after this week's Fed meeting, Powell adopted a hawkish tone, noting that inflation was already above target due to tariffs even before disruptions like the Strait of Hormuz issues. Policymakers are in wait-and-see mode, monitoring inflation expectations and the duration of any oil supply shocks rather than preemptively easing policy. Oil prices have risen but remain under $100 per barrel despite the disruptions—better than feared—partly because the U.S. is pushing to reopen the strait and even considering lifting some Iranian oil sanctions. A prolonged conflict beyond a few weeks could amplify pain for consumers and businesses worldwide through higher energy costs eroding spending.