Dow Jones: Continued ceasefire in the Middle East may temporarily cause inflation to soar.

Strategists at Credit Suisse stated in a report that after the ceasefire in the Middle East conflict, the US Treasury market will assess the extent of damage to US inflation. These strategists said that if the ceasefire continues, the surge in inflation will increasingly be seen as temporary, and Credit Suisse's strategists will expect the Fed to resume cutting rates from September. They said, "Furthermore, it is worth noting the potential impact of this war on US Treasury issuance, as Congress may allocate additional funding to the military." Credit Suisse's strategists predict that any increase in issuance will be moderate and mainly through short-term bond financing, which will help prevent pressure on long-term yields.