Fed rate cut delayed by Iran conflict?
Economists now expect the Fed to delay a rate cut until September due to the Iran conflict and rising oil prices reported.
Here's how the Iran conflict impacts the Fed's calculus: rising oil prices translate to higher inflation, making the Fed hesitant to cut rates for fear of further fueling price increases. This is a classic supply-side shock complicating monetary policy. The expectation of a September cut isn't unanimous; some economists still foresee a move in July if inflation data cools down sufficiently. Market volatility linked to geopolitical events, however, makes forecasting particularly challenging right now. San Antonio businesses reliant on consumer spending should pay close attention. Higher energy costs can squeeze household budgets, potentially dampening demand for non-essential goods and services in the area.
