PIMCO warns Iran tensions could unsettle US Fed rate plans
Business
Tensions in Iran could shake up the US Federal Reserve's plans for interest rates.
Dan Ivascyn from PIMCO pointed out that if the Strait of Hormuz gets blocked, oil prices might spike and make it even harder for the Fed to keep inflation under control.
Dan Ivascyn warns Fed cuts backfire
The Fed has kept rates steady lately but might raise them if prices keep climbing.
Ivascyn warned that cutting rates too soon could actually make borrowing more expensive in the long run.
Other central banks in Europe, the UK and Japan are also tightening policies, and Franklin Templeton's Jenny Johnson noted more people are looking for ways to protect their money from inflation.