CryptoQuant Analyst: If the US-Iran conflict continues to impact inflation, it may force the Federal Reserve to raise interest rates in response

ME News, April 12 (UTC+8): CryptoQuant analyst Darkfost posted on the X platform that the current U.S. inflation structure has gradually become clearer. Although March’s CPI data showed the largest month-on-month increase since 2022, core CPI has remained essentially unchanged, indicating that inflation pressure has not yet fully spread. This trend should continue to be monitored in the upcoming PCE data and over the coming months. As long as this structure persists, it suggests that inflation has not yet formed a systemic entrenchment in the U.S. economy and is more of a stage-specific phenomenon, which may be related to geopolitical conflicts. However, if the duration of the U.S.-Iran conflict is extended, inflation may gradually evolve into a systemic risk and start to affect economic growth; at that point, the Federal Reserve may only be able to respond by continuing to raise interest rates. (Source: ODAILY)