US equities sold off last week as conflict in the Middle East continued to cast a long shadow over global markets. The Federal Reserve (Fed) left interest rates unchanged as expected, Fed officials increased their inflation outlook but still expect to cut interest rates once this year. The European Central Bank also held rates steady as expected, noting that the “war in the Middle East has made the outlook significantly more uncertain, creating upside risks for inflation and downside risks for economic growth”. Similarly, the Bank of England warned that rising energy prices could feed through to wages and require tighter monetary policy. Elsewhere, the Brazilian Central Bank cut rates by 25 bps, in line with forecast, to…