Fed's Goolsbee: Energy inflation from Iran war more persistent than expected, creating stagflationary shock for Asia
By
Lim Hui Jie
Crisped on the outside, thoughtful enough on the inside.
Summary
Chicago Federal Reserve President Austan Goolsbee stated that energy inflation linked to the war in Iran has been more persistent than initially expected, creating a "stagflationary shock" for Asian economies. While oil prices have recently eased on signs of U.S.-Iran peace talks, they remain significantly above pre-war levels. Goolsbee noted that futures markets had anticipated much lower energy prices than current levels.
Key quotes
· 2 pulledEnergy inflation tied to the war in Iran has lasted longer than expected, creating a 'stagflationary shock' for Asian economies
Initial estimates in the futures markets had expected energy prices to be 'a lot lower' than current levels
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