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 Report, April 12 (UTC+8), CryptoQuant analyst Darkfost posted on X platform stating that the current inflation structure in the United States has become increasingly clear. Although the March CPI data recorded the largest month-on-month increase since 2022, the core CPI remained essentially unchanged, indicating that inflationary pressure has not yet fully spread. This trend requires ongoing attention in subsequent PCE data and over the coming months. As long as this structure persists, it suggests that inflation has not become systematically embedded in the U.S. economy and is more of a temporary phenomenon, possibly related to geopolitical conflicts. However, if the U.S.-Iran conflict prolongs, inflation may gradually evolve into a systemic risk and begin to impact economic growth. At that point, the Federal Reserve may have to respond by continuing to raise interest rates. (Source: ODAILY)