As the Middle East conflict escalates and pushes oil prices up, U.S. President Donald Trump once again publicly urges the Federal Reserve to "immediately cut interest rates," but financial markets are repricing interest rate prospects in the opposite direction.
Trump posted on the social platform Truth Social, stating that Federal Reserve Chairman Jerome Powell should "cut interest rates immediately." However, since the U.S. and Israel launched military action against Iran on February 28, traders have significantly reduced their bets on rate cuts this year.
Interest rate futures show that the market previously expected two 25-basis-point cuts by 2026, but now only barely prices in one rate cut.
Meanwhile, international oil prices are rising, intensifying inflation concerns. West Texas Intermediate crude settled near $95.70 per barrel on Thursday.




