Oil Prices Are Crucial for Fed Rate Expectations -- Market Talk

0545 GMT - Oil price developments have become a key driver of U.S. Treasury yields and market expectations for the Federal Reserve's rate path, DHF Capital S.A.'s Bas Kooijman says in a note. "The outlook could shift depending on how developments in the Middle East and oil prices evolve," he says. A deeper and sustained decline in oil could reinforce disinflationary pressures and curb monetary policy tightening expectations, while renewed escalation could revive inflation concerns and drive Treasury yields higher, he says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 29, 2026 01:45 ET (05:45 GMT)