"The base interest rate is, at present, between 3.5% and 3.75% and investors are pricing a more than 97% chance that it will stay there the next meeting, on April 28, per CME's FedWatch monitor."
"This rise stems from the Iran conflict: Oil prices have increased because Iran borders the Strait of Hormuz, a narrow waterway in the Persian Gulf through which exports from the UAE, Qatar, Kuwait, and Iraq all flow."
"Over the weekend, hopes that relations between Iran and the U.S. might improve were dashed: Vice President JD Vance said following peace talks, Iran had chosen 'not to accept' the offered terms."
The Federal Reserve is likely to keep interest rates steady at 3.5%-3.75% during the upcoming FOMC meeting, with a 97% probability among investors. Recent inflation data showed a 3.3% rise in prices, influenced by increased oil prices due to the Iran conflict. Iran's control over the Strait of Hormuz has raised concerns about oil supply, contributing to price hikes. Negotiations with Iran regarding nuclear weapons have stalled, impacting expectations for a diplomatic resolution.
Read at Fortune
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