The more this pot of porridge in the Middle East simmers, the less the Federal Reserve dares to loosen its grip.

BlockBeats News, May 21 — The market has begun to reaccept the reality that "high interest rates may be extended again or even raised again." The latest FOMC meeting minutes show that the consensus within the Federal Reserve to maintain an easing stance has quickly loosened, with multiple officials beginning to believe that if inflation remains above target, there is a possibility of tightening policies again. The market has also adjusted expectations accordingly, with federal funds rate futures beginning to reflect the possibility of another rate hike before the end of the year.





The core reason behind this remains the ongoing impact of Middle Eastern conflicts on energy and the global supply chain. Although Trump stated that US-Iran negotiations are nearing the final stage, the divergence between the US and Israel on "whether to continue striking Iran" is widening. Trump favors ending the conflict through an agreement, while Netanyahu still hopes to further weaken Iran's military and nuclear capabilities. The market worries that even if negotiations make brief progress, as long as the Strait of Hormuz remains open,