Analysts: The oil price grace period is over, and the Federal Reserve may cut interest rates twice before November

Golden Ten Data reported on March 9 that for most of last week, the market actually gave the Middle East conflict a "grace period." At that time, it was generally believed that the situation would not spiral out of control or spill over into the broader economic sphere. However, now, with international oil prices breaking into triple digits, analysts believe this "grace period" has ended, and oil prices have started to price in the risk of escalating conflict. The analysis also pointed out that diesel prices in the United States will be affected, and diesel costs will eventually be passed on to the prices of various goods. Any goods that require truck transportation, such as groceries or items delivered to your doorstep, will be impacted. Mark Zandi, Chief Economist at Moody's Analytics, pointed out that if all these factors are taken into account, for every $10 increase in the price per barrel of oil, an average American household will have to bear about $450 more in annual expenses. Previously, many market participants expected the Federal Reserve to cut interest rates twice before the U.S. midterm elections in November. But currently, CME federal funds rate futures show that the market is betting the Federal Reserve will only cut rates once or twice in total this year, with the first rate cut coming no earlier than the end of July.