🏦 Powell at Harvard: the Middle East war is now a Fed problem
In a speech at Harvard University, Federal Reserve Chair Jerome Powell delivered a message that markets needed to hear — even if they didn't want to.
The conflict in the Middle East is pushing energy prices higher. Higher energy prices feed inflation. And inflation, Powell made clear, is not yet a solved problem.
The conclusion? The Fed stays cautious. No rush to cut rates. No room for complacency.
It's a stark reminder that monetary policy doesn't exist in a vacuum. Every missile fired near the Strait of Hormuz ripples through oil markets, into consumer prices, and straight onto the Fed's agenda.
Central banks can control interest rates. They cannot control geopolitics. And right now, geopolitics is running the show. 🌍📈
The Fed wanted a soft landing. The Middle East had other plans.
When war becomes an inflation variable, the entire global economy pays the price — not just the countries at war.
