Key insights
- NY Fed President Williams voiced concerns that the Iran war is already showing signs of slowing growth and increasing inflation, potentially leading to stagflation. Higher energy prices are impacting various sectors, including fuel, airfares, and groceries. This hawkish tone from a key Fed official suggests a potential for tighter monetary policy, posing a downside risk for US equities.
- New York Fed President John Williams expressed concern Thursday about the Iran war’s impact on the economy, saying it already has shown signs of hiking prices and slowing growth. * “This has begun to play out already,” the policymaker said in a speech.
Glad to hear all these FED governors are at the place ALL THE REST of us have been at for a while now :D
"Such a condition of slow growth and high prices is commonly referred to as stagflation and presents a toxic mix for central bank policymakers who would be left to choose which side to prioritize."
“Not only are elevated energy prices showing up in the rising cost of fuel, but there are also pass-through costs in the form of higher airfares, groceries, fertilizer, and other consumer products,” he said.