What awaits the American economy against the backdrop of the war in Iran?
Financial consultant Yevgeny Gurevich, in an interview with RTVI US, assessed the impact of the US operations in the Middle East on the country's economy for the next few years.
"Oil at $80 or $100-$120 is a direct hit to the wallet of every American at the gas station. At the same time, the Federal Reserve is already in quite tight conditions, and inflation continues to be above the target of 2%. If they lower rates to stimulate the economy, this will lead to an even stronger surge in inflation. And this could lead to a classic trap — stagflation.
The good news is that investments in artificial intelligence are still supporting the economy for now. This is a real structural driver. Additionally, military spending historically stimulates certain sectors. Therefore, I predict rather an increase in inflation and a continuing growth in economic development," Gurevich believes.
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