Fed Chair Powell (Q&A) says no one knows the economic impact of the Middle East conflict; says 'we just don't know' what effects energy rise will have on consumers' consumption and disposable income

Fed Chair Powell's remarks highlight uncertainty around how the ongoing Middle East conflict could impact the U.S. economy, specifically concerning energy prices and consumer behavior. This dovish sentiment may affect market expectations about interest rates, keeping the Fed's path flexible as they assess these external risks. Traders should watch for potential volatility across FX and fixed income as the market digests this caution.