Yellen Sees Rate Cuts Possible Despite Middle East Supply Shock

Gasoline prices, liquefied natural gas, fertilizers, food, transportation costs, and semiconductors are facing a broad supply shock resulting from the U.S.-Iran war. This supply shock has created oil price volatility that clouds the Federal Reserve's policy outlook. The Federal Reserve recently maintained interest rates within the target range of 3.50% to 3.75% in mid-March. Despite this volatility, Janet Yellen believes a rate cut is the most likely scenario later this year.