Institution: With global inflation expectations rising, interest rate hikes are gradually approaching.

Bob Savage of New York Mellon stated in a report that without a specific agreement to end the US-Iran conflict, global inflation expectations will continue to rise, potentially leading to rate hikes by the Federal Reserve and other central banks. The market macro strategy chief said, "Whether or not it materializes, just the thought of the Fed moving back towards tightening marks a significant change in global policy expectations, with central banks in most regions needing to align with the Federal Open Market Committee, at least in terms of communication." He warned that in an environment where major commodities priced in dollars already pose inflation risks, central banks may face the risk of widening interest rate differentials with the dollar and generating additional transmission effects.