Brasília Raises Inflation Forecasts as Central Banks Warn Iran War Could Force Rate Hikes
Updated
Updated · Semafor · May 19
Brasília Raises Inflation Forecasts as Central Banks Warn Iran War Could Force Rate Hikes
5 articles · Updated · Semafor · May 19
Brazil’s government lifted its inflation outlook again, saying oil prices have climbed 25% since its March forecast as the Iran war keeps price pressures elevated.
Moody’s chief economist said the Federal Reserve may have to consider rate hikes, with traders now roughly split between rates staying unchanged or rising by year-end.
That leaves incoming Fed Chair Kevin Warsh under pressure because Trump nominated him expecting rate cuts, even as Trump says “serious negotiations” with Tehran are underway.
The Bank of England and European Central Bank have also warned they may raise rates, extending the inflation threat from Brazil to the world’s major monetary authorities.
As a Mideast war triggers history's largest oil shock, how will Brazil's economy survive the fallout?
Will Brazil's new oil export taxes actually lower fuel prices for its citizens amid global chaos?