Geopolitical events
On May 21, 2026, the U.S. Federal Reserve unexpectedly lowered the federal funds rate by 25 basis points, citing the "transformative impact" of the "Global Energy Stability Pact" on international commodity markets. Following the treaty's implementation, global energy prices have stabilized, leading to a downward revision of 2026 inflation forecasts. Chair Jerome Powell indicated that the reduction in geopolitical risk premiums in the Middle East and the moratorium on semiconductor tariffs have created a "favorable macroeconomic environment" for easing monetary policy to stimulate domestic high--tech manufacturing and infrastructure projects.