Analysis: "Federal Reserve Rate Hike" Nightmare May Come True, Bank of America Says Three Conditions Must Be Met First

SmartContractAuditor · 2026-03-21T02:46:31+00:00

Wall Street is concerned that escalating Middle East conflicts could push up oil prices, which would impact U.S. inflation and subsequently influence the Federal Reserve's interest rate decisions. Bank of America points out that rate hikes need to meet conditions such as labor market stability and rising inflation, with the probability of a rate hike before year-end estimated at above 30%.

SmartContractAuditor

2026-03-21 02:46:31

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Odaily Planet Daily reports that Wall Street is concerned that escalating conflicts in the Middle East could cause international oil prices to soar, potentially reigniting inflation in the United States and prompting the Federal Reserve to delay rate cuts or switch to rate hikes. US banks state that “whether the Federal Reserve will raise interest rates this year” has been a question their clients have been asking recently, and their answer is: while the possibility cannot be completely ruled out, the Fed would need to meet certain conditions to raise rates, including a stable labor market, further inflation acceleration, and Powell remaining as Fed Chair. According to CME’s FedWatch Tool, Wall Street traders now estimate that the probability of the Fed raising rates before the end of this year exceeds 30%, while the chance of a rate cut is only 6.1%. (Cailian Press)

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