‘Nothing To Fear But Nothing To Fear (And Iran)’

The unforeseen pandemic briefly derailed our “Roaring 2020s” outlook early this decade. The one big potential risk to it that we had identified back in 2020 is a war between Israel and Iran that disrupts oil markets and causes oil prices to surge. The risk of that scenario is rising. It could re-escalate inflation, recalling the 1970s, and nix any chance of the Fed cutting interest rates this year. … Like the widely expected recession that never arrived last year, might monetary easing be a no-show this year? … Higher oil prices in recent days are already making bond and stock markets jittery.