Most economists expect June rate cut despite war risks
Economists expect a June rate cut even as the war with Iran drives up energy prices. Most analysts believe the Fed will hold rates steady at its March meeting.
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Economists polled by Reuters maintain that the Federal Reserve will likely implement its first interest rate cut of the year in June. This expectation persists despite significant inflationary risks stemming from energy market volatility caused by the conflict involving the United States, Israel, and Iran. A 40% spike in global oil prices has already driven the yield on the rate-sensitive two-year Treasury note up by nearly 30 basis points, leading financial markets to push their expectations for a rate reduction out to September.
