Fed's Kashkari just threw a red flag at the market: If the Middle East goes south, rate hikes aren't just talk.


He mentioned that if the conflict in Iran drags on and the Strait of Hormuz gets blocked, we could see a global energy crunch, leading to runaway inflation expectations. This means the Fed might have to pull off a series of rate hikes.
Plus, he's already pushed back against any hints of rate cuts. Now he's straight up saying: the next rate adjustment could go either way—rate cuts or hikes—depending on how inflation plays out.
It's clear now: the situation in the Middle East has directly tied the Fed's monetary policy to oil prices. If oil prices go haywire, we could see the rate hike cycle kick back into gear. The market's loose expectations? They need to be completely repriced now.
$BTC $ETH $CL
#StockTradingChallengeUpTo17000U
BTC-3.46%
ETH-4.43%
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned