PIMCO Warns Fed May Raise Rates Amid US-Iran Tensions

Pacific Investment Management Company (PIMCO) has cautioned that the Federal Reserve might need to increase interest rates due to inflation pressures from the US-Iran conflict, according to BeInCrypto. PIMCO's CIO Dan Ivascyn highlighted Iran's closure of the Strait of Hormuz as exacerbating inflation challenges for US policymakers. He warned that reducing borrowing costs could be counterproductive, potentially leading to higher long-term rates. Meanwhile, Goldman Sachs has delayed its forecast for Fed rate cuts to December 2026 and March 2027, citing persistent energy cost impacts.