Iran tensions impact Fed hike odds

Geopolitical tensions stemming from Iran are influencing market expectations regarding future Federal Reserve interest rate hikes. The heightened uncertainty in global markets, often associated with such conflicts, can lead investors to anticipate a more cautious monetary policy stance from central banks. This suggests that the Federal Reserve might be less inclined to raise rates aggressively if economic stability is perceived to be at risk. Market participants are closely monitoring these developments as they weigh the potential impact on inflation, economic growth, and borrowing costs globally.