Samy Chaar, Chief Economist at Lombard Odier, discussed the impact on markets of Israel's latest attack on Iran. He suggests that the worst is over, although tensions remain high and future reactions should be monitored.

Chaar turned to monetary policy, indicating that the Fed's challenges are not so much related to the currency volatility caused by such events, but rather to inflation, particularly in services. However, the increase in spending and income is complicating the Fed's task.

As far as oil prices are concerned, a ceiling of 90 dollars a barrel is seen as posing less of a risk. However, he points out that a price above $110 could trigger an energy shock. But he adds that OPEC supplies are sufficient to prevent an excessive rise in oil prices.

The economist also mentioned that, despite the Fed's call for tighter monetary policy, Lombard Odier still expects three rate cuts this year. 

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