July meeting may see rate hike due to rising inflation
The Federal Reserve’s July meeting is now expected to be a crucial decision point for interest rates.
Recent events, including the Iran war military escalation and new tariffs, have led to a surge in energy prices and concerns about the economy.
The labor market had been stabilizing, and oil prices had slid, but the recent developments have changed the outlook, making a rate hike possible.
Economists are now divided on the outcome, with some arguing for a rate hike and others for holding steady, citing a 30-40% chance of a hike.