Former US Treasury Secretary Yellen: The Fed may cut interest rates once this year, and the US and China should not decouple.

Former US Treasury Secretary Yellen believes that although the Iran war has caused supply shocks to the global economy, putting pressure on inflation, the Fed may still cut interest rates once this year. "Short-term inflation expectations have risen slightly, but the Fed will continue to monitor this closely, I believe they are open-minded," Yellen said at the HSBC Global Investment Summit in Hong Kong on Wednesday. "If you had to ask me for an assessment, imagine I was about to attend the next Federal Open Market Committee meeting for the release of forecasts, my guess is that there may be a rate cut later this year." Yellen stated that the conflict in the Middle East has intensified economic uncertainty. "This has brought upward pressure on inflation, as we have already seen in recent inflation reports, but we may see more in the future," she said. "This is indeed a broad supply shock."