Iran war threatens Trump's affordability push as rising energy prices complicate Fed rate cuts

Government

The war with Iran is quickly becoming an economic problem for the United States — and a policy dilemma for the Federal Reserve. Rising oil prices, shipping disruptions in the Middle East and fresh signs of weakness in the U.S. labor market are creating a complicated backdrop just as inflation had begun to show some signs of improvement. For policymakers, the risk is a familiar but unwelcome scenario: higher prices paired with slowing growth — a dynamic known as “stagflation” — that could make

Tag-uri: Inflatie