The Iran war’s inflationary pressures were unlikely to abate, analysts warned, even as US President Donald Trump said “serious negotiations” were underway with Tehran.
Ratings agency Moody’s chief economist warned that the Federal Reserve would be forced to consider rate hikes. Traders are roughly 50-50 on rates either staying flat or rising by year-end, which would pile pressure on incoming Fed Chair Kevin Warsh: Trump nominated him on the expectation of cuts.
The Bank of England and European Central Bank have both warned that they may raise rates, while Brasília raised inflation forecasts, saying oil prices had increased 25% since its March forecast.
