The main reason could be the Israel-Hamas war. The labor market in the United States is strong. However, the inflation is still high level. What will it affect the monetary policies of the Fed? Is it possible to pause the federal funds rate?
Well, if the war expands, the global economy will be impacted and it will be a stagflation trigger. Crude oil WTI price increasing is just an example.
The worst scenario is that the war expands, oil price high, the inflation increases again, then the Fed rise the interest rate again. Well, is it possible for the U.S. economy to sustain them? I'm not sure.. but, it looks like the worst storm is coming.
What I can do it now is just praying for the war is mediated by major nations 🙏
Upvoted! Thank you for supporting witness @jswit.
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it is unlikely to be a permanent increase
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