Episode Details
Back to Episodes
What the Fed Is Learning from the Iran War Energy Spike
Season 1
Episode 26
Published 1 month, 1 week ago
Description
Lucas and Luna dig into the June 2026 energy inflation spike tied to the Iran conflict. With the average US household spending $450 more on gas and energy, and core CPI running at 3.3%, the hosts explore why the Fed can't just raise rates to fix supply shocks. They discuss how the Fed's preferred PCE gauge captures this differently than CPI, why Chicago Fed President Goolsbee called energy inflation 'more persistent than expected,' and what this means for the rate path ahead. A grounded look at how geopolitical events force the Fed to distinguish between cyclical and structural inflation — and why the answer isn't always more tightening.