BlockBeats News, April 1st, a Goldman Sachs analyst pointed out in a report that since the outbreak of the Iran-Iraq war, the market pricing of the US Federal Fund Rate has experienced significant volatility, but the likelihood of a rate hike this year remains low. The analyst stated that the current supply shock is relatively small and more limited in its inflationary impact compared to past shocks that led to inflation issues, with the increase in oil prices also being lower than that of the 1970s. Furthermore, they believe that “the starting point of the economy makes it less likely for inflation to spill over on a large scale,” and the current monetary policy starting point has also reduced the probability of a rate hike. The analyst emphasized: “The Fed usually does not adopt a tightening policy solely in response to an oil shock.”
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