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Chicago Fed President: Oil Price Shock Comes at an Inopportune Time, Will Significantly Push Up Inflation Expectations
Svmuu News FOMC voting member and Chicago Fed President Goolsbee stated on Thursday local time that the economy is suffering from an oil price shock. At a time when the inflation from last year's tariff shock has not yet subsided, the oil price shock is pushing up prices again. This "inopportune timing" concerns him. Goolsbee said: "When gasoline prices rise sharply in the short term, people's expectations for inflation over the next 12 months begin to rise significantly, which could put us in a more difficult position." Since the outbreak of the Iran war, the sharp rise in oil prices has also increased uncertainty for businesses and slowed the pace of hiring. (Jin10)
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