Federal Reserve's Goolsbee: Iran War Causes Persistent Energy Inflation, Asia Faces Stagflation Shock

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Jinse Finance reported that on May 28, Chicago Federal Reserve Chairman Goolsbee said on Thursday that the duration of energy inflation related to the Iran war has been longer than expected and has caused a “stagflation shock” to Asian economies. Goolsbee said during a meeting of the Bank of Japan—Institute for Monetary and Economic Research that the initial forecasts in the futures market had originally expected energy prices to be “far below” current levels. Despite recent signs of progress in U.S.-Iran peace negotiations that have led to a pullback in oil prices, prices remain clearly higher than pre-war levels. Goolsbee also issued a warning to Asian economies, saying that because these economies rely on energy imports, this shock is “more like a traditional stagflation shock.” (Jin10)
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