The Fed held interest rates steady despite high inflation, while signs point to a possible US strike on Iran and tighter money right after next week's midterm elections.

• The Fed kept rates unchanged (two officials wanted a hike instead), saying inflation is still high but it wants more data before moving again.
• Reports say the US and Israel are preparing for a short, intense military campaign against Iran, possibly timed for after the midterms, which would likely push gas and oil prices higher and raise costs for everyone.
• Big tech and AI companies (Meta, Amazon, Microsoft, Nvidia, and others) are piling up debt to fund the AI buildout, and the cost of insuring that debt is rising, a warning sign for borrowing costs across the economy.
• Rising borrowing costs are already hitting homeowners with adjustable-rate mortgages, whose payments can suddenly jump.
• The Fed is also cutting the number of meetings where it sets rates from eight a year down to six starting in 2027, a notable change to how often policy can shift.

Outlook: Watch the midterms and any Iran strike decision in the next one to two weeks, both could move gas prices, inflation, and the Fed's next rate move.