End of Iran Conflict and Hawkish Fed Will Pull US Economy in Opposite Directions -- Market Talk

Dow Jones00:51

1250 ET - The ending of the conflict in Iran and a more hawkish Federal Reserve will pull the US economy in opposite directions, Oxford Economics says in a note. For consumers, "Lower global energy prices and reduced supply-chain stress will translate into cheaper gasoline prices and reduced second-round effects on prices for food, travel, and other energy-intensive sectors," Oxford says. However, higher interest rates present another headwind to the recovery of non-AI business investment. In addition, even as energy prices decline, Oxford expects headline inflation to run more than 3.2% through December, meaning real income growth will be flat for much of the rest of the year.(jessica.coacci@wsj.com)

(END) Dow Jones Newswires

June 23, 2026 12:51 ET (16:51 GMT)

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