Republican lawmakers still want the Federal Reserve to cut interest rates this year, regardless of how the United States’ war in Iran is currently affecting prices.
Both conservative and liberal economists say the Iran war’s effect on inflation and interest rates will come down to its duration; a monthslong conflict would threaten to prolong today’s supply chain problems and potentially deliver a blow to the U.S. economy, they say.
In its fourth week, the war in Iran has already caused a surge in gas prices and complicated the White House’s affordability message.