Gate News reports that on March 13, the escalation of Middle East conflicts triggered a surge in oil prices, significantly increasing short-term inflation expectations in the United States. The Federal Reserve faces challenges to its interest rate cut prospects. Data shows that the one-year breakeven inflation rate (a measure of market expectations for future inflation) has risen to 4.62%, the highest since June 2022; the two-year breakeven inflation rate has also increased to 3.18%, reaching a nearly one-year high. If high oil prices continue to push inflation upward, the Federal Reserve may find it difficult to start cutting rates from the current 3.5%-3.75% level. Traders currently estimate the probability that the Federal Reserve will not cut rates throughout 2026 has risen to approximately 44.7%.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
