Key Takeaways Financial markets are increasingly convinced the Fed's next move will be to raise interest rates, not cut them. The threat of inflation has worsened this month since the U.S. attacked Iran, driving up energy prices, putting pressure on the Fed to keep rates higher for longer or even raise them. President Donald Trump's efforts to oust Fed Chair Jerome Powell could backfire, delaying the day that a Fed chair more favorable to rate cuts takes charge of the central bank. Two conflicts ...