Middle Eastern conflict severely impacts the global economy! OECD: U.S. inflation may surge to 4.2%, the Federal Reserve will delay interest rate cuts, and Europe may be forced to raise rates.

According to well-known financial account Walter Bloomberg on the X platform, citing the latest forecast from the Organization for Economic Co-operation and Development (OECD), the Middle East conflict is driving up global inflation and weakening the economy. The OECD estimates that U.S. inflation will rise to 4.2% this year and warns that the Federal Reserve (Fed) may delay interest rate cuts, while the European Central Bank (ECB) could even raise rates.

(Background: Goldman Sachs predicts a 30% chance of a recession in the U.S. this year, while still expecting two rate cuts by the end of the year: is this bad news or good news?)

(Additional context: Internet thinker Balaji states that U.S. politics are collapsing, and Bitcoin is your escape pod and alarm system.)

The ongoing geopolitical conflict in the Middle East continues to escalate, and its impact on the global economy is gradually expanding. According to a recent post by the well-known financial account Walter Bloomberg (@DeItaone), the OECD has issued a new warning, pointing out that rising energy costs and uncertainty caused by the war are keeping global inflation high and severely limiting economic recovery.

WAR FUELS INFLATION, CLOUDS GLOBAL GROWTH OUTLOOK

The Middle East conflict is pushing inflation higher and weakening the global economy, according to the Organisation for Economic Co-operation and Development.

The OECD now sees G20 inflation at 4% this year, with U.S. inflation… pic.twitter.com/QfhZzHJPgo

— *Walter Bloomberg (@DeItaone) March 26, 2026

U.S. Inflation Expected to Reach 4.2%, Fed May Delay Rate Cuts

The OECD has significantly raised its inflation forecast for this year, predicting an average inflation rate of 4% across G20 countries, with U.S. inflation climbing to 4.2%, well above previous estimates. In response to the stubborn inflation, central banks are adopting a more cautious monetary policy stance.

The post notes that to combat sticky inflation, the Federal Reserve (Fed) is currently considering delaying its planned rate cuts; meanwhile, the European Central Bank (ECB) may even tighten policy by raising rates to curb rising prices.

Energy Crisis Becomes the Biggest Obstacle to Global Economy

Despite benefiting from strong momentum earlier this year, global economic growth is still barely holding on, but downside risks are rapidly increasing. The OECD warns that if the Middle East conflict leads to long-term disruptions in energy supply, it will further push up global prices and disrupt financial markets. The organization bluntly states that without this war, the global economic outlook would be more optimistic.

In summary, high energy costs and geopolitical risks have become the biggest concerns in current markets. Investors should closely monitor the Federal Reserve’s upcoming interest rate decisions, as these will directly influence capital flows into assets like Bitcoin and U.S. stocks.