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Fed cuts rates by 50bps within 6 months of Iran conflict

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user-generated· macro

Fed cuts rates by 50bps within 6 months of Iran conflict

Market overview

Trump’s Iran policy risks stagflation, with rising oil prices squeezing consumers while growth slows. The Fed would likely respond with aggressive rate cuts to offset recessionary pressures, despite inflationary headwinds. Trump’s political vulnerability on inflation would force the Fed to act preemptively to stabilize markets.

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Implied probability (Yes)
68%

Source: user-generated

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