An energy shock stemming from the fighting has added a layer of complexity to the Federal Reserve’s decision-making around interest rates.

The conflict in the Middle East has left the Federal Reserve braced for higher inflation, upending expectations about if officials will restart interest rate cuts.

Christopher J. Waller, a Federal Reserve governor, said he would support rate cuts later this year if the labor market continued to weaken.

Jerome H. Powell, the Fed chair, wants to keep the central bank’s policy options open as officials stare down another economic shock that threatens to…

Most officials at the U.S. central bank still expect at least one quarter-point cut to interest rates this year.