Fed's Cook (voter) says uncertainty is elevated and balance of risks are largely on net in balance, adds sees inflation risk greater now as a result of the war in Iran and that it could have a substantial effect on inflation

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Explosion reported in US base in Erbil, Iraq, according to Fars News Agency

Explosions sound in Iran's capital Tehran, according to Al Jazeera

Fed's Cook (voter) says uncertainty is elevated and balance of risks are largely on net in balance, adds sees inflation risk greater now as a result of the war in Iran and that it could have a substantial effect on inflation

New Zealand ANZ Roy Morgan Consumer Confidence (Mar) 91.3 (Prev. 100.1)

Informed military source announced the new strategic plan of Iran's armed forces in accordance with the developments in the field and, referring to the role of the UAE and Bahrain in supporting the recent US threat of a ground attack on Iranian islands

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Context

Fed's Cook highlights increased uncertainty and assesses that inflation risks are now more significant due to the conflict in Iran. This statement indicates a potential shift in the Fed's outlook, suggesting that inflation may become a more pressing concern, which could lead to tighter monetary policy. Traders should consider how this might influence the USD, fixed income, and energy markets as expectations adjust to these risks.

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