Goldman Sachs strategist Kamakshya Trivedi predicts the Federal Reserve could deliver two interest-rate cuts this year if the conflict with Iran resolves quickly. Trivedi, Goldman's chief FX and EM strategist, told Bloomberg that a swift end to the war would allow inflation to trend downward, creating room for monetary easing.

This outlook contrasts with current market expectations of a more hawkish Fed stance. The central bank has maintained a cautious approach to rate cuts amid persistent inflation concerns and geopolitical uncertainty. Trivedi's analysis suggests that a rapid de-escalation in the Middle East could significantly alter the Fed's trajectory.

The potential for multiple rate cuts would have broad implications for markets, from bond yields to equity valuations. Investors are closely watching developments in Iran as they assess the Fed's next moves. A quick resolution could trigger a shift in market positioning, with rate-sensitive sectors likely to benefit from lower borrowing costs.