Pimco warns Iran war could lead Federal Reserve to raise rates
Crypto Briefing
Pimco warns that escalating conflict in Iran could disrupt energy supplies, forcing the Federal Reserve to raise interest rates instead of cutting them.Summary
Pimco, a major bond manager, warns that the ongoing conflict involving Iran is destabilizing global energy markets. Disruptions near the Strait of Hormuz threaten to cause an energy-driven inflation spike, potentially forcing the Federal Reserve to shift from expected rate cuts to rate hikes. This prospect has already caused division within the Federal Open Market Committee and tightened global financial conditions, prompting Pimco to prepare for a hawkish monetary policy pivot.
(Source：Crypto Briefing)