Odaily Planet Daily reports that the International Monetary Fund has revised its forecast for the Fed’s return to its 2% inflation target to the end of 2027, from mid-2027 previously. Markets have begun pricing in rate hikes, as inflation risks continue to rise; the Fed should proceed cautiously on monetary policy and carefully adjust its stance based on upcoming data, with clear Fed communication remaining crucial.
Observing inflationary pressures transmitted by U.S. tariff hikes and renewed upward pressure on overall inflation from energy prices, global oil inventories are projected to fall to 7.5 billion barrels in July, the lowest level in five years; prior to the Iran conflict, inventories stood at approximately 8 billion barrels, and the conflict has suppressed global daily oil production by about 14 million barrels. Future oil price trends will depend on whether the Strait of Hormuz can be reopened. (GoldTen)