
Investors have pulled back from a bold expectation that new Fed chair Kevin Warsh will deliver rapid interest-rate cuts, as persistent inflation and rising energy costs cloud the outlook. Market participants say the Iran conflict has pushed up oil prices and inflation, making immediate easing less likely even though Warsh is broadly viewed as market-friendly. Traders also note that an eventual end to the Iran war could speed the Fed toward cuts, but for now bond and futures markets are tempering their bets.
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