Rate Hike Concerns Reappear as PIMCO Warns Iran War May Fuel Inflation

• PIMCO warned that the Fed may consider more tightening as inflation risks continue rising.
• Goldman Sachs delayed expected Fed cuts as energy prices keep inflation elevated.
• Higher-for-longer interest rates continued adding pressure across crypto markets.

Pacific Investment Management Company (PIMCO) warned that the Federal Reserve may not be in a position to lower interest rates as inflation pressures continue rising following the escalation of the US-Iran conflict and the disruption of global energy markets. The warning came as financial institutions reassessed expectations for monetary policy after the Strait of Hormuz closure heightened concerns about higher oil prices and inflation persistence.

Dan Ivascyn, chief investment officer at PIMCO, said the inflation outlook has become more complicated for policymakers attempting to return inflation to the Federal Res…

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