Analyst: The escalation of tensions in Iran may lead to changes in the Federal Reserve's interest rate cut plan

According to BlockBeats, on June 16th, the Federal Reserve is expected to maintain the current interest rate level unchanged in its latest decision this week. The focus of market attention will be on whether the Federal Reserve will release any signals about the timing of future interest rate cuts. The recently released CPI and PPI data were weaker than expected, prompting market participants to advance their expectations for the next interest rate cut. The money market has fully priced the possibility of a rate cut in October this year, and there is even a high probability that action will be taken in September. Previously, the market generally expected that interest rate cuts would not occur until December. Citigroup analysts point out that the market may currently underestimate the risk of interest rate cuts. However, the imposition of tariffs by the United States may push up inflation, and if tensions between Iran escalate further, causing oil prices to continue rising, this may further delay the pace of the Federal Reserve's interest rate cuts. An analyst from Allianz stated that against the backdrop of high inflation, the Federal Reserve is unlikely to rashly relax its monetary policy. (Golden Ten)