Fed faces divisions on inflation path amid 4% inflation rate

The post Trump Ends Iran Ceasefire as Stocks Fall and Oil Prices Jump appeared on BitcoinEthereumNews.com. Financial markets retreated after President Donald Trump declared the U.S.-Iran ceasefire had effectively ended, reigniting fears of a broader Middle East conflict. Investors quickly shifted toward safer assets as concerns over energy supplies resurfaced. Consequently, U.S. equities declined, oil prices climbed, and market volatility accelerated.  Around $500 billion in U.S. stock market value disappeared within hours as traders assessed the possibility of renewed military action. Besides, optimism surrounding recent diplomatic progress between Washington and Tehran faded as geopolitical risks returned to the forefront. Oil Supply Fears Drive Market Moves Trump also warned that the United States could severely damage Iran’s critical infrastructure during any future escalation. Additionally, he pointed to Kharg Island, Iran’s primary crude export terminal, after recent military ope

The post Gold declines below $4,100 as US–Iran tensions revive inflation worries, Fed rate hike bets appeared on BitcoinEthereumNews.com. Gold price (XAU/USD) declines to around $4,075 during the early Asian session on Thursday. The precious metal extends its downside as US President Donald Trump said the ceasefire with Iran has ended, stoking concerns that a renewal of war could again drive inflation and push up interest rates. Reuters reported on Thursday that Trump stated that an interim agreement aimed at ending the conflict with Iran was “over.” Additionally, US President threatened to bomb Iran for a second day and reimpose the US naval blockade in retaliation for attacks on tankers transiting the Strait of Hormuz. “The main factor for today’s move is the increased escalation in tensions between the U.S. and Iran, with a potential ceasefire over, we’ve seen risk assets across the board trade lower, gold included,” said David Meger, director of metals trading at High Ridge Futures

The post Euro steadies as Middle East strikes offsets Fed repricing appeared on BitcoinEthereumNews.com. The Euro holds firm against the US Dollar on Wednesday as hostilities in the Middle East continued, with the US attacking Iran for the second straight day at around the Strait of Hormuz. At the time of writing, the EUR/USD trades at 1.1420, after bouncing off daily lows of 1.1391. EUR/USD holds firm as Fed minutes, Hormuz strikes lift USD The US Central Command revealed in a post that “At the direction of the Commander in Chief, US Central Command forces have started conducting additional strikes against Iran to further degrade their ability to threaten freedom of navigation in the Strait of Hormuz.” The markets reacted immediately to the headline, as risk appetite soured, as depicted by US equity markets finishing Wednesday’s session with losses. Crude prices are registering a leg up, with Western Texas Intermediate (WTI), the US Oil benchmark, up 3.57% at $74.77. Earlier, the Fede

The post Fed Minutes Flag AI Demand as Inflation Risk as Rate Hike Remains on the Table appeared on BitcoinEthereumNews.com. The latest Fed minutes have highlighted the risk that AI demand could have on inflation as the Fed continues to hold rates steady. The minutes also signaled that a hike is still on the cards if inflation remains elevated and fails to fall to the 2% target. Fed Minutes Flag Inflation Risk Driven By AI Demand The Federal Reserve minutes from the June FOMC meeting highlighted multiple scenarios regarding the outlook for monetary policy. Most participants pointed to scenarios in which the labor market remains stable while inflation remains elevated due to strong AI-related demand, the Middle East conflict, or the effects of tariffs. In such scenarios, almost all of the participants indicated that some policy firming would be necessary to return to their 2% target. Furthermore, the Fed minutes showed that most participants commented on scenarios in which inflationary

AI-driven inflation risks could lead to prolonged high interest rates, impacting economic growth and dampening risk asset attractiveness. The post Federal Reserve cites AI demand as inflation risk in latest minutes appeared first on Crypto Briefing.

Rising oil prices and geopolitical tensions may drive inflation, prompting potential Fed rate hikes, impacting economic stability and growth. The post US stocks fall as oil surges on renewed US-Iran tensions appeared first on Crypto Briefing.

AI demand's inflationary impact may prompt tighter Fed policies, affecting economic stability and market expectations for future rates. The post Fed minutes highlight AI demand as new inflation risk appeared first on Crypto Briefing.

The post Bitcoin Drops Gains As Bulls Cut Risk Ahead of Fed Minutes Release appeared on BitcoinEthereumNews.com. Bitcoin (BTC) trades slightly above $62,000 and is down nearly 2% over the past 24 hours amid a risk-off mood across global markets. The pressure is not coming from crypto exclusively and is more so attributed to a sharp selloff in semiconductor and AI stocks.  Renewed profit-taking from Samsung sent Asian markets reeling overnight, and military escalation between the US and Iran sent oil up around 5%. As a result, US stocks opened lower, and on Wednesday the Federal Reserve released the minutes from its June meeting, a report traders typically watch closely for clues on the timing of any rate cut.  Currently, markets price roughly a 73% chance the Fed holds rates steady at its next meeting on July 29, but the major takeaway for investors will be how the tone of the minutes frames the Fed’s view on inflation and interest rates.   Bitcoin buyers quickly became sellers  Bitcoi