The conflict between Iran and Israel escalates, the United States harvests 20 countries, 6 trillion withdraws, and India's economy may decline for 20 years
On April 19, the conflict between Iran and Israel continued. Israel promised to respond to Iranian attacks. Immediately afterwards, Iran also stated that it would respond appropriately to any Israeli action. Iran is ready to "use weapons that have not been used so far." This has increased investors' concerns about the continued escalation of the conflict between Israel and Iran, and has intensified people's concerns that the conflict in Gaza is spreading further to the Middle East, causing oil, gold and the US dollar to soar.
Just as the continued escalation of the conflict between Iran and Israel stimulated the rise in oil prices, which will once again push US inflation expectations out of control, according to a report published by UBS strategists on the 19th, the strong growth in US retail sales in March showed that the combination of strong US economic growth and stubborn inflation increased the possibility of the Federal Reserve raising interest rates rather than cutting them, which will cause the Federal Reserve to raise interest rates again at the beginning of next year, reaching a federal funds rate of 6.5% by the middle of next year. The agency said that the possibility of US inflation failing to fall to the Fed's target level is increasing, prompting the Fed to raise interest rates again and triggering a deep sell-off in the US bond and stock markets.
