US war in Iran costs $25B, impacting Fed rate cut expectations for 2026
Tech US war in Iran costs $25B, impacting Fed rate cut expectations for 2026 Pentagon reports the US war in Iran has cost $25 billion so far, while the Fed Rate Cuts Predictions for 2026 market sits at 0% YES, with traders pricing in inflationary pressure from the conflicts spending. Market reaction The $25 billion price tag on Operation Epic Fury has traders reassessing Fed rate cut odds for 2026. The Fed Rate Cuts Predictions for 2026 market shows zero movement, meaning no one is betting on cuts under current conditions. The anticipated $1.5 trillion defense budget for 2027 points to a prolonged engagement that makes rate cuts improbable. The Fed Decision April and June market reflects the same skepticism about near-term cuts. Economic strain from the conflict and potential inflation reduce the likelihood of a 50+ bps cut after the April or June meetings. Jerome Powells commitment to staying in his role amid legal challenges suggests the Fed will prioritize stability over easing. The Bitcoin Above on April 30 market sits at 0.1% YES. Only $4 in USDC has actually traded, and $202 would move the price 5 points, so liquidity is almost nonexistent. Traders are not positioning for Bitcoin to reach $86,000 during an