CryptoQuant analyst: If the U.S.-Iran conflict continues to impact inflation, the Federal Reserve may be forced to raise interest rates in response

Odaily reported that CryptoQuant analyst Darkfost posted on X stating that the current structure of U.S. inflation has gradually become clear. Although the March CPI data recorded the largest month-on-month increase since 2022, the core CPI remained basically unchanged, indicating that inflationary pressure has not yet spread comprehensively. This trend needs to be continuously monitored in the subsequent PCE data and in the coming months. As long as this structure persists, it means that inflation has not yet formed a systemic embedding in the U.S. economy and is more of a transitory phenomenon, possibly related to geopolitical conflicts. However, if the conflict between the U.S. and Iran is prolonged, inflation could gradually develop into a systemic risk and begin to impact economic growth. At that point, the Federal Reserve might only be able to respond by continuing to raise interest rates.