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Middle East conflict creates new uncertainty for the Fed

Additional inflationary risks could jeopardise Trump’s hopes for rate cuts, experts say

middle-east

The outbreak of renewed conflict in the Middle East has further complicated the decision pathway for the US Federal Reserve as it seeks to balance both sides of its mandate, experts have told Central Banking.

The joint US-Israeli attack on Iran on February 28, which resulted in the death of the country’s supreme leader, prompted the Islamic republic to launch strikes against countries across the region. Iran has also effectively blockaded the Strait of Hormuz, the waterway through which much of

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