Middle East Conflict Alters Inflation Trajectory, Economist Says

Inflation trends were initially moving in the right direction for February, according to ChainCatcher. However, Annex Wealth Management's Chief Economist Brian Jacobsen noted that the conflict in the Middle East has shifted this trajectory. Energy, which was expected to contribute to deflation, is now likely to drive inflation. Additionally, disruptions in the fertilizer market could lead to accelerating food prices. While the Federal Reserve is expected to emphasize maintaining current interest rates, Jacobsen pointed out that monetary policy cannot reopen the Strait of Hormuz, suggesting that such statements may be largely rhetorical.