Federal Reserve raises April inflation forecast to 3.56% amid Iran war disruption
Updated
Updated · The Motley Fool · Apr 27
Federal Reserve raises April inflation forecast to 3.56% amid Iran war disruption
7 articles · Updated · The Motley Fool · Apr 27
The Fed's latest projection shows TTM inflation rising by 26 basis points to 3.56% as of April 23, following energy price spikes caused by the Iran war and Strait of Hormuz closure.
U.S. gas prices surged by $1.16 per gallon since late February, with diesel up $1.89, marking the fastest increase in over 30 years and raising transportation and production costs for businesses.
Persistently high inflation and ongoing conflict in Iran have eliminated expectations for near-term Fed rate cuts, leaving the historically expensive U.S. stock market more vulnerable to downside risk.
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