Fed Signals Hikes Amid Geopolitical Risks, EU-US Trade Tensions Rise

1. Fed's Kashkari has signaled the potential for future interest rate hikes due to sustained inflationary pressures driven by the war.
2. Geopolitical risks are escalating following reports of a drone attack on the Zaporizhzhia nuclear plant and an assault on a vessel near Iran, which could impact energy markets.
3. Germany has responded to Trump's announcement of higher potential auto tariffs, signaling new trade tensions between the European Union and the United States.