The conflict with Iran is impacting U.S. inflation outlook, with inflation rising to 3.8% due to surging energy costs. On May 13, U.S. Treasury bond yields reached 5%, prompting investors to ditch government debt. Additionally, Goldman Sachs has delayed its Fed cut outlook to December 2026 as the war drives U.S. inflation.
US shelter and rent costs are decelerating, but rising prices in other inflation basket categories are creating new pressures for markets and the Federal Reserve.
Read the full storyUS consumer prices hit their highest level since May 2023, driven by a spike in energy costs linked to the Iran conflict, potentially forcing a hawkish Fed shift.
Investors sell off U.S. government debt as rising energy prices linked to the Iran conflict drive up domestic inflation expectations.
Global financial markets are closely monitoring the extent to which the ongoing conflict with Iran will influence US inflation levels in the coming week. According to a report by the Financial Times, geopolitical instability in the Middle East is heightening the risk of significant energy price volatility. Rising oil…