Powell Rules Out 2026 Rate Cuts as 60% Oil Surge Clouds Outlook

4 articles · Updated · The Motley Fool · May 27

Three straight Fed holds left rates unchanged in April, but Powell used his final press conference to say cuts are off the table for the foreseeable future.
3.8% CPI inflation and 6% producer-price inflation in April, amplified by Trump's tariffs and the Iran conflict, led Powell to warn that higher energy costs could spread through the economy.
At least one quarter-point hike is now expected by traders, a sharp reversal from earlier bets for a half-point of cuts by December 2026.
5.18% 30-year Treasury yields in May—the highest since 2007—signal tighter financial conditions even as the S&P 500 and Nasdaq have rebounded to record highs.
60% higher oil prices and still-elevated U.S.-Iran tensions leave stocks vulnerable if the conflict drags on and inflation keeps climbing.

With AI driving markets and conflict fueling inflation, which powerful economic force will ultimately triumph?

As global trade routes fracture, how will this new era of economic warfare reshape our daily costs?