Chicago Fed's Goolsbee Warns Iran War Drives Energy Inflation Higher Than Expected, Threatens Asia With Stagflation

According to Jin10 on May 28, Chicago Federal Reserve President Austan Goolsbee said on Thursday that energy inflation related to the Iran conflict has persisted longer than anticipated, imposing a "stagflation shock" on Asian economies. Speaking at a Bank of Japan Financial Research Institute conference, Goolsbee noted that futures markets had initially projected energy prices to fall "well below" current levels. Despite recent declines due to peace negotiations, oil prices remain significantly elevated compared to pre-conflict levels. Goolsbee warned Asian economies that energy-import dependency makes this shock akin to a "traditional stagflation impact."
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