Energy Shock Puts Fed in Stagflation Trap as Warsh-Bessent Accord Debate Resurfaces
Iranian attacks drove European gas prices up 85% and oil above $80, triggering a 2.5% S&P 500 drop and 12% plunge in Korean stocks. The energy shock forces the Fed to choose between fighting inflation and supporting financial stability. Former Fed officials are reviving discussion of a Fed-Treasury coordination framework to manage the crisis.
ViaNews Editorial Team (Finance)•