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US inflation data dims Fed rate cut hopes amid Iran conflict

By Estefano Gomez · Published May 13, 2026 · 2 min read · Source: Crypto Briefing
Trading

## Market Snapshot

In the “Fed rate cut by June 2026 meeting” market, YES pricing is at 2.3%, reflecting a decline from 3% over the past 24 hours. Meanwhile, the “gold price predictions for May 2026” market sees YES pricing at 1.9%, down from 3% in the same period.

## Key Takeaways

– Market activity suggests decreased expectations for a Fed rate cut by June 2026, with YES pricing at 2.3%. – Gold price predictions indicate limited confidence in reaching high price targets in May, with YES pricing at 1.9%. – Persistent inflation and geopolitical tensions are consistent with reduced likelihood of Fed rate cuts in 2026.

## Article Body

Recent US inflation data, reporting a year-over-year CPI of 3.3% for March 2026 and a PCE of 3.5%, has renewed focus on the Federal Reserve’s monetary policy trajectory. These figures are largely attributed to energy price spikes amid the ongoing Iran conflict, which involves a US-backed coalition. The conflict has exacerbated oil supply disruptions, driving crude prices above $100 per barrel. Such conditions have added complexity to the Fed’s policy considerations, as inflation remains above target levels, complicating the prospect of rate cuts. The geopolitical risks continue to shape market expectations around both interest rates and commodity prices.

## Market Interpretation

Current market pricing is supportive of a NO outcome for a Fed rate cut by June 2026, with YES odds at 2.3%, suggesting low expectations for easing in the near term. Similarly, gold market pricing is consistent with skepticism regarding high price targets, with YES odds at 1.9%. The impact of the news is considered high, reflecting significant market adjustments due to inflation concerns and geopolitical uncertainties.

## What to Watch

Key indicators to monitor include upcoming FOMC meetings and statements from Federal Reserve Chair Jerome Powell, as they may provide further insights into the likelihood of rate adjustments. Additionally, developments in the Iran conflict, particularly any movements affecting oil prices, will be critical in shaping future market expectations. Watch for any shifts in central bank policies that could influence commodity markets, including gold.

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