The Economic Cost of the Iran Conflict: GDP, Oil Prices and the Federal Deficit

Описание: ABOUT THE EPISODE
Professor Kent Smetters, faculty director of the Penn Wharton Budget Model, outlines the economic costs of the escalating conflict with Iran, estimating direct federal expenses between $40 billion and $95 billion, with a central projection of about $65 billion largely tied to munitions replenishment and deployment. He projects a potential GDP hit of roughly $115 billion over a couple of months due primarily to higher oil and gasoline prices, calling it a negative supply shock that raises inflation, dampens output, and makes the Federal Reserve less likely to cut interest rates.

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#OilPrices #InflationRisk #SupplyShock #USGDP #EnergyMarkets #FederalReserve
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