#FOMCMeeting *Midday News:*

*As the conflict between Israel and Iran entered its 5th day, Wall Street indexes edged slightly lower on Tuesday, affecting investor confidence ahead of the Federal Reserve's upcoming monetary policy decision.*

*The aerial confrontation began on Friday with Israel's strike on Iranian nuclear facilities, raising concerns that the conflict could disrupt oil exports from the resource-rich Middle East.*

*The surge in oil prices occurred just before the Federal Reserve is set to announce its monetary policy decision on Wednesday. Markets widely expect the Fed to keep interest rates unchanged.*

*According to the FedWatch tool from the CME Group, money market trends show that traders expect a total rate cut of 46 basis points by the end of 2025, with a 55% probability of a 25-basis-point cut in September.*

*"Given that tariffs may lead to price increases, we believe officials are reluctant to adopt a dovish tone at this point, whether in their communication or in the dot plot," said Matthew Ryan, Head of Market Strategy at Ebury, in an email statement.*