CryptoQuant Analyst: If US-Iran Conflict Persists, Inflation May Force Fed to Raise Interest Rates

Odaily News CryptoQuant analyst Darkfost posted on platform X, stating that the current US inflation structure has gradually become clearer. Although the March CPI data recorded the largest month-on-month increase since 2022, the core CPI remained largely unchanged, indicating that inflationary pressures have not yet spread comprehensively. This trend needs to be continuously monitored in subsequent PCE data and over the coming months. As long as this structure persists, it suggests that inflation has not yet become systemically embedded in the US economy and is more of a phased phenomenon, possibly related to geopolitical conflicts. However, if the US-Iran conflict lasts for an extended period, inflation may gradually evolve into a systemic risk and begin to impact economic growth. At that point, the Federal Reserve may have no choice but to respond by continuing to raise interest rates.