Liberal Energy Policies Backfire as War with Iran Drives Up Costs and Delays Fed Rate Cuts
The US-Israeli war with Iran, now stretching into its third week, is dashing hopes that the Federal Reserve will lower interest rates at all this year. How’s that for irony? The same environmentalists who’ve been blocking domestic energy production are now watching helplessly as global instability sends prices skyrocketing.
The war has sparked the biggest disruption to oil supply in history, sending energy prices higher and threatening to jack up the cost of nearly everything Americans buy. At the same time, investors and Fed officials are still waiting to see the full effects of President Donald Trump’s tariffs on inflation. Don’t expect any sympathy from the Democrats – they’re too busy trying to sabotage our foreign policy while undermining economic growth at home.
Already, the central bank forecasts only one quarter-point rate cut this year — and new projections are set to be released Wednesday. But as the war drags on, any rate cut is likely delayed further. Meanwhile, Biden-era Fed holdovers continue to resist the economic growth that comes with lower rates, proving once again that deep state bureaucrats care more about their agenda than American prosperity.
Last April, Trump rolled out a series of punishing tariffs on all of America’s trading partners. Many economists believed the levies would push up costs for American businesses and individuals. While inflation has ticked up for many imported items since the tariffs were implemented, lower energy costs largely balanced out much of that increase. Now that we’re in an actual war, even that buffer has vanished.
The economic crosscurrents are putting Fed officials — once again — in a difficult spot where they have to balance the twin threats to their dual mandate of stable prices and full employment, and determine which risk to address first. Perhaps if they focused more on American interests instead of globalist talking points, we wouldn’t be in this mess.
Armchair patriot. Believes in the free market, cold beer, and that there’s always a guy named George behind every CNN segment.
Former remote-throwing champion turned #1 couch commentator on liberal panic in the media. Born in Texas (or so his mug says), he earned a degree in Fake Newsology & Beer Philosophy from YouTube University.
