Fed weighs back-to-back rate hike ahead of US midterms as Iran war stokes inflation

The Federal Reserve is deliberating a second consecutive rate increase before the US midterm elections, driven by inflation pressures amplified by Trump's military campaign against Iran. The decision is uncertain and politically sensitive, as it would mark a hawkish pivot amid an active conflict. This matters because it signals potential tightening that could lift yields and the dollar while pressuring risk assets.

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