Here we go again…
Rising geopolitical tensions in the Middle East are sending oil prices higher, and with that, the chances of the Fed cutting rates this year are “evaporating before our very eyes,” according to MarketWatch.
The market is now pricing in a sustained tighter monetary policy as liquidity contracts. That’s bad news for long-duration bonds and unprofitable tech stocks, which feel the squeeze when rate cuts are delayed.
Higher oil prices also stall disinflation, push bond yields up, and strengthen the US dollar versus emerging market currencies.
If you’re watching interest rates, tech, or FX markets, this is a trend you can’t ignore.
🔗 Source: MarketWatch | [Read Full Article](https://www.marketwatch.com/story/any-chance-the-fed-cuts-rates-this-year-is-evaporating-before-our-very-eyes-as-iran-tensions-raise-oil-prices-18978691)
