Is the inflation scare over? Iran cease-fire leads to hope for more Fed interest-rate cuts.

U.S. inflation is expected to worsen in the near term, though war-related price increases tied to the Iran conflict may fade by summer. That could give the Federal Reserve room to cut interest rates again later this year. The article implies a near-term inflationary shock followed by a potential policy easing backdrop.

Analysis

U.S. inflation is expected to worsen in the near term, though war-related price increases tied to the Iran conflict may fade by summer. That could give the Federal Reserve room to cut interest rates again later this year. The article implies a near-term inflationary shock followed by a potential policy easing backdrop.