The Fed confronts an unusually confusing economic moment

Federal Reserve officials have sent mixed signals on the path of interest rates as inflation concerns have intensified, fueling uncertainty about the outlook for the US economy. Policymakers will have a chance to clarify their thinking this week when they convene for their latest rate-setting meeting. Inflation slowed sharply in June, according to the latest Consumer Price Index, largely due to lower energy prices that month as tensions briefly eased in the war with Iran. The encouraging inflation report prompted investors to scale back expectations that the Fed would need to raise interest rates for the first time since July 2023 in order to price pressures in check. But the conflict in the Middle East has intensified in recent weeks, triggering a spike in global energy prices. Brent crude, the global oil benchmark, crossed $100 a barrel Thursday for the first time since May.