Dynamical mean field theory (DMFT) combined with finite-temperature
exact diagonalization (ED) has recently been used to study the role
of Coulomb interactions in several transition metal oxides and other
strongly correlated materials. The focus here is on iron pnictides
and chalcogenides. Although compounds such as FeAsLaO and FeSe have
similar one-electron properties, experiments suggest significant
differences. Evaluating the effect of Coulomb correlations within
ED/DMFT we show that in FeSe the formation of 3d local moments gives
rise to non-Fermi-liquid behavior. In FeAsLaO Coulomb interactions
are not strong enough to cause spin freezing, so that this compound
merely exhibits moderate effective mass enhancement. The relation
between these kinds of multi-orbital correlations and multi-site
correlations that are important in high-Tc cuprates will
also be addressed.