Pimco CIO Sees Risk of Fed Hiking Rates Due to Iran War, FT Says

The war in Iran may lead the Federal Reserve to further delay interest-rate cuts or even raise borrowing costs, Pimco Chief Investment Officer Dan Ivascyn told the Financial Times.

The bond powerhouse’s CIO said surging energy prices tied to Iran’s closing of the Strait of Hormuz create a new challenge for US policymakers who have struggled to bring inflation down to the central bank’s 2% target, the FT reported, citing an interview.