Iran conflict complicates Fed's rate cut plans
The Federal Reserve had been expected to cut interest rates this year, but fresh conflict in Iran has made things tricky.
After US and Israeli airstrikes killed Iran's Supreme Leader on Saturday, oil prices shot up by over 15%, and inflation worries spiked.
This jump also pushed the key US Treasury yield higher, making the Fed's job even tougher.
Fed officials mull over policy changes
Fed officials are now rethinking their game plan.
Minneapolis Fed President Neel Kashkari says policy changes might be needed because of these global shocks.
Others, like New York's John Williams and Kansas City's Jeff Schmid, are worried inflation could stick around longer—Schmid said hikes "could now be on the table," while Williams said the fallout hinges on how persistent the effects are.
Plus, with Iran closing a key oil shipping route (the Strait of Hormuz), supply concerns could keep prices—and pressure—up for a while.