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Yellen Says One Fed Cut This Year Is Still Possible as Hammack Urges Patience

Energy-driven inflation from the Iran war has pushed investors to price out near‑term easing.

Overview

  • Janet Yellen, speaking Wednesday at the HSBC summit in Hong Kong, said her base case still allows for one Federal Reserve rate cut later this year.
  • Cleveland Fed President Beth Hammack said rates are in a good place and signaled a hold for a good while with two‑sided risks depending on incoming data.
  • The Iran war has driven a broad supply shock as oil prices rose more than 30%, lifting fuel costs and helping push U.S. inflation higher in recent reports.
  • The Fed kept its policy rate at 3.50% to 3.75% in March, yet traders have largely removed bets on any cut this year.
  • Yellen warned that President Trump’s public pressure on the central bank poses an unusual threat to Fed independence.