#1 out of 2
business5m ago
Volatile Oil Markets Cloud the Economic Outlook - San Francisco Fed
- Oil market volatility linked to Middle East conflict clouds near-term U.S. inflation and growth outlook.
- Fed inflation path remains above target in the short term, with energy costs driving higher prices.
- Labor market shows cooling momentum with slower wage growth across skill levels.
- GDP growth projected as moderate, but the conflict adds downside risks to activity.
- Inflation expected to hover near 3% by end-2026 before easing toward 2% by 2027.
- Markets shift from anticipated two 2026 cuts to a hold amid higher inflation concerns.
- Energy disruptions may spill over into broader goods and services if they persist.
- Inflation drivers are increasingly acyclical, with energy costs keeping overall inflation elevated.
- Report is authored by Adam Shapiro from the San Francisco Fed with forecasting inputs.
Vote 0

