A market snapshot from the FOMC decision to the end of Warsh's press conference
The dollar weakened broadly, Treasury yields steepened and stocks were mixed from the FOMC decision through Warsh's press conference.
Qatar-led mediators work to restart talks, persuade Iran to permit UN nuclear inspectors in exchange for sanctions relief, amid threat of US strikes.
A fresh report has been published by Axios' Barak Ravid.
The report describes the situation as a last-ditch effort, stating that "a renewed bombing offensive appears likely shortly after the midterms without a last-minute deal." The author estimates that strikes are 85% priced in. The White House signals a short campaign, but Iran's response could determine subsequent developments. Iran's reaction might depend on the location and targets of US strikes.
According to the report, "an operation is expected to include a week of massive strikes on Iranian leadership, energy, nuclear and infrastructure targets."
Countries in the region worry that Iran could retaliate against strikes on its own infrastructure by attacking theirs.
A sequencing issue exists beyond Iran's consideration of relinquishing nuclear material. Axios reports that "Qataris presented ideas for how to bridge the gap between the U.S. demand that Iran give up its enriched uranium stockpile and Iran's insistence that the U.S. first lift its naval blockade and release Iran's frozen funds."
The proposal is probably the seven-day plan that has been circulated.
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The dollar weakened broadly, Treasury yields steepened and stocks were mixed from the FOMC decision through Warsh's press conference.
Fed held rates at 3.75%-4% in October 2026. Two dissenters wanted a quarter-point hike. Markets showed mild moves after the decision.
Fed's Warsh said more data will guide next steps, with a hawkish tone; dollar fell on views that the one hike is working.
The Fed held rates at 3.75%-4% with two dissenting votes for a hike. Traders price an 84% chance of a December move; Bitcoin touched $81,185.