CryptoQuant analyst: Continued US-Iran conflict could impact inflation and force the Federal Reserve to raise interest rates.

CryptoQuant analyst Darkfost wrote on the X platform that the current inflation structure in the United States is gradually becoming clearer. Although the March CPI data recorded the largest month-on-month increase since 2022, the core CPI remained basically unchanged, indicating that inflationary pressures have not yet spread comprehensively. This trend needs to be continuously monitored in subsequent PCE data and in the coming months. As long as this structure continues, it means that inflation has not yet become systemically embedded in the US economy, but is more of a phase phenomenon, possibly related to geopolitical conflicts. However, if the US-Iran conflict continues for a long time, inflation may gradually evolve into a systemic risk and begin to affect economic growth. At that time, the Federal Reserve may only be able to deal with it by continuing to raise interest rates.