Inflation rises again, driven by energy costs amid Iran war
The Washington Times cites Finance and Monetary Policy Analyst Steve Swedberg on inflation and rising costs:
“The economic data provide little support for lower interest rates, particularly since inflation persists at high levels. Yet President Trump continues to call for lower interest rates,” said Steve Swedberg, a finance and monetary policy analyst at the Competitive Enterprise Institute. “The result is a growing tension between economic indicators that suggest restraint and political pressure pushing in the opposite direction. Whether Warsh follows the data or the administration’s preferred policy direction will be one of the defining questions facing the Fed this summer.”
Oil prices rose slightly on Wednesday as Mr. Trump threatened to punish Iran for dragging out peace talks, and both sides renewed military attacks. Stocks were also down because of the new turmoil in the Middle East.
Mr. Trump said the U.S. is moving more oil through the Strait of Hormuz and inflation will ease as soon as the conflict is over, given the pent-up supply.