Economy

Fed Rate Cut Hopes Fade as Iran War Fuels Inflation

Surging petrol prices from the Strait of Hormuz crisis have traders pushing back their expectations for Federal Reserve rate cuts all the way to next summer, delivering a direct blow to Trump's ambitions for cheaper borrowing. Separately, the US has launched new tariff investigations targeting the UK, EU, and Canada — fresh probes that could lead to additional levies after the Supreme Court struck down many of Trump's earlier tariffs. The Fed is also moving to loosen capital requirements for big US banks, a reversal of post-2008 safeguards that Wall Street has cheered.

Sources

Investors slash Fed rate-cut bets as Iran war sends petrol prices surging

Financial Times · Mar 12