Why this week’s Fed meeting likely won’t help stocks break out to new highs

Investors are heading into the coming week’s two-day Federal Reserve meeting facing a wide band of uncertainty around the path ahead for the U.S. economy, inflation, and interest rates — which has the potential to keep stocks rangebound, make them more volatile, or both through the end of the year.

An anticipated spike in inflation from trade wars has yet to materialize, as demonstrated by mild data

on consumer- and producer prices for May. Tensions in the Middle East sparked by Israel’s attack on Iran’s nuclear program early Friday caused oil futures to soar as much as 14% overnight in the U.S. before paring back the same day, and raised concerns in the bond market about the potential impact on overall prices.