U.

U.S. inflation pressures intensify amid geopolitical tensions. Economists have significantly downgraded growth forecasts as the Iran conflict and surging energy prices threaten to push inflation higher while weakening consumer spending and slowing GDP expansion. The Federal Reserve faces mounting pressure to delay rate cuts until clarity emerges on whether energy-driven price pressures will prove temporary or persistent. Despite economic growth still supported by AI investments and data center expansion, recession risks have notably increased. The economy's foundation is becoming increasingly fragile, relying on fewer growth drivers. Market participants should monitor inflation data closely as the Fed navigates this critical juncture between supporting growth and controlling price pressures.