The Fed is expected to maintain interest rates unchanged, balancing the impact of oil prices.

Investors will turn their attention to Federal Reserve Chairman Jerome Powell this week to gain insights into how the Fed is weighing a series of economic risks as the United States and Israel team up to confront Iran. The market expects Federal Reserve officials to hold the benchmark interest rate in the range of 3.5% to 3.75% for a second consecutive meeting. However, policymakers may engage in intense discussions on how a potential Middle East war could add pressure on both aspects of their dual mandate, and explore whether the threat of economic growth slowing down could exacerbate inflation - inflation has been above the Fed's target level for five consecutive years. "Whenever the Fed's dual mandate becomes conflicting missions, there should be a debate," said Diane Swonk, chief economist at KPMG. "The reality is, we don't have the luxury to turn a blind eye to inflation like other central banks do, because over the past five years, inflation has become a more entrenched and increasing risk."