U.S. consumer confidence rose modestly in April despite growing anxiety over soaring energy prices brought on by the war in Iran. The Conference Board said Tuesday that its consumer confidence index inched up to 92.8 in April from 92.2 in March. Respondents' comments about prices, oil, gas and the war increased in April as the national average for a gallon of gas in the U.S. rose to $4.18 this week. The last time U.S. drivers were collectively paying this much at the pump was nearly four years ago, following Russia's invasion of Ukraine.

President Donald Trump's nominee to chair the Federal Reserve says that he never promised the White House he would cut interest rates, even as the president renewed his calls for the central bank to do so. The comments underscore the challenge faced by Kevin Warsh, 56, a former top Fed official whom Trump named in January to replace the current Fed chair, Jerome Powell. Democrats on the committee accused Warsh on Tuesday of flip-flopping on interest rates over the years, supporting higher interest rates under Democratic presidents and advocating rate cuts during Trump's time in office.

The Iran war has scrambled the Federal Reserve's outlook on inflation and unemployment and will likely further delay interest rate cuts this year, putting off any relief for consumers struggling with high borrowing costs for home and car purchases. The spike in oil and gas prices presents already-divided Fed officials with a worst-case scenario as they conclude a key meeting Wednesday. Costlier gas will raise inflation in the short run, which typically causes the central bank to raise borrowing costs — or at least leave them unchanged. Yet if the spike is high enough or lasts long enough, it could hammer the economy and push up unemployment, which the Fed would typically respond to by cutting its key rate.

American employers unexpectedly cut 92,000 jobs last month, a sign that the labor market remains under strain. The unemployment rate blipped up to 4.4%. The Labor Department reported Friday that hiring deteriorated from January, when companies, nonprofits and government agencies added a healthy 126,000 jobs. Economists had expected 60,000 new jobs in February. Revisions also cut 69,000 jobs from December and January payrolls. The surprisingly weak employment picture in February adds to the economic uncertainty over the war with Iran, which has caused oil prices to surge and saddled business and consumers with unforeseen costs.

U.S. economic growth slowed in the final three months of last year, dragged down by the six-week shutdown of the federal government and a pullback in consumer spending. The figures point to what could be a more modest pace of growth in the coming quarters, as consumers take on more debt and cut back on saving to maintain their spending. Business investment, outside data centers and other equipment dedicated to artificial intelligence, grew at only a moderate pace. Still, a measure of underlying growth that focuses on consumer and business spending was mostly solid, economists said. The sharp slowdown in government outlays because of the shutdown shaved a full percentage point from growth.

A key measure of inflation fell to nearly a five-year low last month as apartment rental price growth slowed and gas prices fell, offering some relief to Americans still grappling with the sharp increase in costs of the past five years. Friday's report suggests inflation could be cooling, but it comes after the cost of food, gas, and apartment rents have soared since the pandemic, with consumer prices about 25% higher than they were five years ago. The increase in such a broad range of costs has become a high-profile political issue under the rubric of "affordability."

Renters facing high costs are turning to "rent now, pay later" services like Flex, Livble, and Affirm. These services let renters split rent payments, which they say will help them manage cash flow. However, consumer advocates warn the products often act like short-term loans with high fees, sometimes leading to triple-digit interest rates. Kellen Johnson used Flex to split his $1,850 monthly rent into two payments when he worked as an independently contracted delivery person for Amazon. He paid over $33 monthly in fees. Critics argue these services don't solve the issue of affordability in the rental market and may lead to higher rents.