Markets & FOMC Focusing on "Negative Consequences" in Oil's Inflation Shock

Geopolitical tensions from a U.S.-Iran conflict are dominating market attention; Collin Martin says crude oil volatility from the situation will likely keep the FOMC on hold for the foreseeable future. He warns this dynamic is tightening financial conditions, fostering a risk-off backdrop that could raise volatility across energy, rates and credit markets and limit easing expectations.

Analysis

Geopolitical tensions from a U.S.-Iran conflict are dominating market attention; Collin Martin says crude oil volatility from the situation will likely keep the FOMC on hold for the foreseeable future. He warns this dynamic is tightening financial conditions, fostering a risk-off backdrop that could raise volatility across energy, rates and credit markets and limit easing expectations.