BNP Paribas: High energy prices may prompt the Federal Reserve to release interest rate hike signal next month

The interest rate strategist at BNP Paribas predicts that if energy prices remain high and the US unemployment rate remains stable, the Federal Reserve may raise the possibility of interest rate hikes at its April meeting. Federal Reserve officials kept interest rates unchanged on Wednesday and acknowledged that the Middle East conflict has increased uncertainty, driving up oil prices. Federal Reserve Chairman Powell stated that it is necessary to see progress in inflation before resuming interest rate cuts. According to a report by BNP Paribas, even without war, improving inflation remains difficult. Strategists believe that the Federal Reserve's policy outlook has become more symmetrical, and it is necessary to observe the lasting impact of war on energy prices and labor market resilience.