The Federal Reserve is expected to keep its interest rates steady as it confronts a new inflation threat: rising gas prices. This comes as the Middle East oil crisis intensifies, with crude oil prices up more than 40% and the average retail price of unleaded gas in the US has risen more than 75 cents a gallon since the war began. The diesel fuel that supplies America's domestic supply chain topped $5 a gallon for the first time since 2022. The Fed's dual mandate is to maintain maximum employment while maintaining prices stable over the long-term. However, this may not be possible due to the weakened state of the economy and rising unemployment and inflation at the same time, creating a scenario known as "stagflation." The Fed is also facing legal challenges, including a Justice Department probe into the future of Fed governor Lisa Cook and a potential trade embargo on the future direction of the Fed.