IRAN CONFLICT SHIFTS FED RATE CUT EXPECTATIONS The Iran conflict and rising oil prices are reshaping expectations for U.S. monetary policy. Morgan Stanley says the Fed is now more likely to delay cuts or cut deeper than previously forecast. Chief U.S. economist Michael Gapen notes inflation at 3% and low unemployment could push cuts to later in 2026, possibly three reductions lowering rates to 2.75–3%. The baseline still expects two cuts in June and September, but risks now favor later, potentially larger easing.(*Walter Bloomberg)