{"id":8354,"date":"2026-04-09T10:40:54","date_gmt":"2026-04-09T10:40:54","guid":{"rendered":"https:\/\/dailystreetchronicle.com\/index.php\/2026\/04\/09\/fed-rate-cuts-under-pressure-as-iran-war-fuels-inflation-risks\/"},"modified":"2026-04-09T10:40:54","modified_gmt":"2026-04-09T10:40:54","slug":"fed-rate-cuts-under-pressure-as-iran-war-fuels-inflation-risks","status":"publish","type":"post","link":"https:\/\/dailystreetchronicle.com\/index.php\/2026\/04\/09\/fed-rate-cuts-under-pressure-as-iran-war-fuels-inflation-risks\/","title":{"rendered":"Fed Rate Cuts Under Pressure as Iran War Fuels Inflation Risks"},"content":{"rendered":"<p>The post <a href=\"https:\/\/coinpedia.org\/news\/iran-war-just-killed-four-fed-rate-cuts-what-it-means-for-crypto\/\">Fed Rate Cuts Under Pressure as Iran War Fuels Inflation Risks<\/a> appeared first on <a href=\"https:\/\/coinpedia.org\">Coinpedia Fintech News<\/a><\/p>\n<p>The Iran war pushed oil to $115, forcing markets to cut expectations from four Fed rate cuts to just one. The Federal Reserve kept rates at 3.50%\u20133.75%, as rising energy prices lifted inflation to around 3.0%.&nbsp;<\/p>\n<p>This signals delayed rate cuts and tighter liquidity for risk assets, which often pressure Bitcoin and altcoins.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-why-the-iran-war-lowered-fed-rate-cuts\">Why the Iran War Lowered Fed Rate Cuts?<\/h2>\n<p>Before the U.S-Israel and Iran conflict escalated, markets <a href=\"https:\/\/x.com\/cryptorover\/status\/1998407120274792707\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">expected<\/a> four rate cuts this year. But the war caused oil prices to jump to nearly $118 per barrel, keeping inflation high at around 3%, above the Fed\u2019s 2% goal.\u00a0<\/p>\n<p>Because of this, the Fed decided to keep rates steady at 3.50%\u20133.75%.<\/p>\n<p>Minutes from their March meeting show that Fed officials are taking a careful, \u201cwait-and-see\u201d approach. Some <a href=\"https:\/\/x.com\/elerianm\/status\/2030656035472466016?\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">experts<\/a> hope they can lower rates later if inflation drops<\/p>\n<p>Fed officials also warned that higher oil prices from Middle East tensions could push short-term inflation higher, making it harder to reduce rates safely.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-ceasefire-pushes-oil-lower-bitcoin-price-stall\">Ceasefire Pushes Oil Lower, Bitcoin Price Stalls<\/h2>\n<p>After a two-week ceasefire, oil dropped from $115 to below $95. This reduces inflation pressure and may bring rate cuts back into discussion. If oil stays low, markets may again price in easier policy.<\/p>\n<p>For crypto, this creates short-term uncertainty. Bitcoin price may struggle to break higher without clear signals of rate cuts.<\/p>\n<p>In past cycles, similar setups have pressured Bitcoin.<\/p>\n<ul class=\"wp-block-list\">\n<li>In 2022, when the Fed paused cuts and kept rates high, Bitcoin fell below $20,000.<\/li>\n<li>In 2023, expectations of delayed cuts kept BTC range-bound for months.<\/li>\n<li>On the flip side, when rate cuts were priced in mid 2025, Bitcoin jumped sharply above $100,000.<\/li>\n<\/ul>\n<p>This shows how strongly crypto reacts to Fed policy shifts.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-what-happens-next\">What Happens Next?<\/h2>\n<p>Several factors will decide the outcome, but as of now, CME data shows traders remain cautious. Only <a href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">25.4% expect<\/a> a rate cut in December, while 99.5% see no change for April.<\/p>\n<p>However, now all eyes are on tomorrow\u2019s April CPI data to show whether the oil shock is fading. If inflation drops, rate cut expectations may rise for further months.<\/p>\n<p>Additionally, leadership changes at the Fed could also matter. Jerome Powell is expected to leave in May, with Kevin Warsh seen as more supportive of lower rates.<\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The post Fed Rate Cuts Under Pressure as Iran War Fuels Inflation Risks appeared first&hellip;<\/p>\n","protected":false},"author":1,"featured_media":8355,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-8354","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/dailystreetchronicle.com\/index.php\/wp-json\/wp\/v2\/posts\/8354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailystreetchronicle.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailystreetchronicle.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailystreetchronicle.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dailystreetchronicle.com\/index.php\/wp-json\/wp\/v2\/comments?post=8354"}],"version-history":[{"count":0,"href":"https:\/\/dailystreetchronicle.com\/index.php\/wp-json\/wp\/v2\/posts\/8354\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailystreetchronicle.com\/index.php\/wp-json\/wp\/v2\/media\/8355"}],"wp:attachment":[{"href":"https:\/\/dailystreetchronicle.com\/index.php\/wp-json\/wp\/v2\/media?parent=8354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailystreetchronicle.com\/index.php\/wp-json\/wp\/v2\/categories?post=8354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailystreetchronicle.com\/index.php\/wp-json\/wp\/v2\/tags?post=8354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}