Roubini: "50% chance the U.S. expands the war with Iran…pressure on the Fed to raise rates"
Summary
- Nouriel Roubini said the probability that President Trump expands the war with Iran exceeds 50%.
- He noted that if the war expands, there could be a risk of stagflation like in the 1970s.
- Roubini said Fed rate hikes may be a limited option for a new chair to establish credibility early on.
Forecast Trend Report by Period
Nouriel Roubini, the New York University professor known as “Dr. Doom,” warned of the possibility of an expanded military clash between the U.S. and Iran.
According to Bloomberg on the 27th (local time), Roubini said “the probability that President Trump expands the war with Iran exceeds 50%.”
He noted that if the war expands, “there could be a risk of stagflation like in the 1970s.”
He also said of the Federal Reserve (Fed)’s monetary policy that it “nearly undermined its credibility by missing the window to raise rates in 2022,” adding that “a new chair may have limited options other than rate hikes to establish credibility early on.”
The remarks suggest that geopolitical risk and monetary policy could simultaneously act as headwinds for markets.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
