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Chances of a Federal Reserve rate cut fade as inflation worsens
- Prospects for Federal Reserve interest rate cuts this year are fading as the Iran conflict threatens sustained inflation, with Wall Street investors now weighing the probability of a rate hike instead.
- Since the war began on February 28, longer-term interest rates have surged, pushing 30-year fixed-rate mortgages to an average of 6.22% and the yield on the 10-year Treasury note to nearly 4.4% on Wednesday.
- During an interview Monday, Austan Goolsbee, president of the Federal Reserve Bank of Chicago, stated that if inflation rises while unemployment remains stable, "then there is an obvious playbook, which is rate increases have to be on the table."
- San Francisco Fed President Mary Daly stated that conflict-driven uncertainty means "there is no single most-likely path" for interest rates. Evercore ISI economist Krishna Guha wrote Tuesday that cuts are "delayed, not derailed."
- Forecasts from UBS suggest inflation could jump to 3.4% this month, with UBS economist Jonathan Pingle warning that energy shocks create a "headwind to growth." These pressures suggest higher rates may persist.
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Pittsburgh Post-Gazette+3 Reposted by 3 other sources
Chances of a Federal Reserve rate hike fade as inflation worsens
The jump in gas prices stemming from the war in Iran has had another impact that may also affect many Americans' finances: Higher interest rates. Longer-term...
·Pittsburgh, United States
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Coverage Details
Total News Sources37
Leaning Left9Leaning Right3Center23Last UpdatedBias Distribution66% Center
Bias Distribution
- 66% of the sources are Center
66% Center
L 26%
C 66%
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