IMF Managing Director Georgieva: The US-Iran conflict may disrupt energy supplies, and the Fed is expected to consider interest rate cuts by the end of the year.

ChainNewsAbmedia
TRUMP-2,38%

The United States recently launched airstrikes on three nuclear facilities in Iran. In response, International Monetary Fund (IMF) President Kristalina Georgieva ( warned in an interview this morning on 6/23 that this wave of military action by the United States not only affects the surge in oil prices but also further disrupts the global economy.

The US military airstrikes on Iran’s nuclear facilities have increased global economic uncertainty.

George Ava stated in an interview that the recent airstrikes by the United States against Iran have further complicated the already unstable global situation.

She pointed out that the biggest impact currently comes from energy prices, and there may also be “secondary and tertiary” effects. For example, if this volatility drags down the growth expectations of large economies, it could force the IMF to once again revise down its global growth forecast.

The crude oil market is experiencing significant volatility, and the turmoil from the conflict may disrupt energy supplies.

According to Bloomberg, after the Asian market opened on Monday, the global oil benchmark Brent crude )BRENT( price surged by 5.7%, reaching $81.40 per barrel, before slightly retracting, with trading volume also surging.

Georgie Ava pointed out that the IMF is particularly closely monitoring changes in the risk premium of the oil and gas markets. Currently, there is a noticeable surge in options trading volume, and the futures price curve clearly reflects the market’s concerns about short-term supply tightness. She is even more worried about whether this conflict will disrupt energy supply routes or spread to other countries, further disrupting economic activities.

The US military dropped the GBU-57 bunker buster, severely damaging Iran’s nuclear facilities. The IMF’s April report has revealed that the global economy is not optimistic, with Trump’s tariffs being the main reason.

Georgie Ava stated that the IMF had already downgraded the global economic growth forecast in April due to Trump’s tariff policy causing a “reshuffling” of the global trade situation, which has dragged down overall economic growth. She added that the data from the first two quarters of this year indeed shows such a trend.

She pointed out that the global economy is unlikely to fall into recession, however:

“Once market volatility increases, companies will pause investments, and consumers will also tighten their spending, leading to a natural decrease in growth momentum.”

Inflationary pressure in the United States is easing, and the Fed is expected to consider interest rate cuts before the end of the year.

Regarding the economic situation in the United States, George Ava stated that the U.S. is currently in a phase of “easing inflationary pressures”; however, it will still take some time before the Federal Reserve )Fed( lowers interest rates.

She expects the Federal Reserve to assess whether to adjust interest rates based on the overall economic conditions at that time and will consider a rate cut before the end of this year. However, the U.S. labor market remains strong, and wage growth supports the level of household consumption.

There is a possibility that consideration for interest rate cuts may begin before the end of the year, depending on the overall economic situation at that time. She also mentioned that the current labor market in the United States remains strong, and wage growth provides support for consumer spending by American households.

) Iran’s trump card: If the Strait of Hormuz is blocked, will the global energy supply be disrupted? (

This article IMF President Georgieva: The US-Iran conflict may disrupt energy supplies, and the Fed is expected to consider interest rate cuts by the end of the year, first appeared in Chain News ABMedia.

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.
Comment
0/400
No comments