Pimco CIO warns Iran war may prompt Fed to hike rates
Crypto Briefing
PIMCO's CIO warns that geopolitical conflict in Iran could force the Federal Reserve to raise interest rates to combat energy-driven inflation.Summary
The Federal Reserve faces unprecedented internal dissent following the Iran conflict, which has disrupted global energy markets and fueled inflation. While previously expecting rate cuts, PIMCO now projects a more restrictive environment, warning that persistent, supply-side inflation could force the Fed to raise interest rates rather than cut them. This shift has rattled markets, with investors moving away from speculative assets as institutional experts prepare for a prolonged period of tighter monetary policy.
(Source：Crypto Briefing)