NY Fed President Williams linked falling energy prices to lower inflation forecasts, citing oil price drops after a US-Iran peace deal and recovered Strait of Hormuz transit.
Richmond Fed President Tom Barkin warned that cumulative supply shocks, including an energy-price spike from the Iran war, challenge the US inflation anchor and may delay interest rate cuts.
New York Fed President John Williams stated that Middle East conflicts are increasing energy and fertilizer prices, lifting overall inflation. He forecasts inflation reaching 2.75%–3% this year before
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