Fed's Stance on Oil Shocks Lowers Rate Hike Odds for 2026

U.S. Federal Reserve Chair Jerome Powell indicated that the central bank is currently overlooking short-term oil price fluctuations, which has contributed to a decrease in the likelihood of a rate hike in 2026 from 25% to 5%. According to NS3.AI, Powell's remarks led to a decline in U.S. Treasury yields, although West Texas Intermediate (WTI) crude oil prices increased by 5.3%, reaching nearly $105 per barrel. This rise in oil prices exerted pressure on both stock markets and Bitcoin.