FOMC results are out: this year may see only one rate cut, or possibly none at all!

The voting result was 11:1, overwhelmingly approved. Compared to the last time when 2 members supported a rate cut, now only 1 remains.
The Federal Reserve's stance suddenly turned hawkish, not because employment or GDP are underperforming, but because issues have arisen on the supply side:
👉 Oil prices: Middle East conflicts, energy prices soaring, nearly undoing two years of efforts to combat inflation
👉 Supply chain: conflicts causing shipping costs to rise, and commodity prices beginning to climb again
The Fed's logic is straightforward: if inflation might rebound due to external factors, it's better to tighten too much than to loosen too early.
This is the first time the Fed has mentioned "war" in official documents.
The conclusion is clear: this year will most likely see at most one rate cut, or possibly none at all.
Thanks to Trump's Middle East war