Interest rate cuts are no longer easy for the Fed. With ongoing Iran conflict and volatile oil markets, it may even consider rate hikes to ensure inflation remains stable.
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U.S. inflation rises as oil prices surge: energy costs drive the March CPI spike
Rising oil prices are now feeding into U.S. inflation, with energy costs driving a sharp increase in headline CPI for March. As crude climbs above $100 per barrel amid Iran war tensions, the divergence between headline and core inflation is complicating the Federal Reserve’s path on interest rates.
G7 central banks hold rates as energy-driven inflation risks persist
Rising oil prices are feeding inflation risks, forcing central banks to delay rate cuts despite easing geopolitical tensions.
How the Iran war is driving up food prices through fertilizer supply disruptions
Oil and gas might not be the only commodities vulnerable to the disruptions in the Strait of Hormuz. Fertilizers are at particular risk, as their supplies get choked at the strait, a critical shipping corridor for a third of the world’s fertilizer shipments.