WTI Crude Oil Prices Raise Concerns of Higher Inflation
WTI crude oil prices (CL=F) have increased by about 7 percent over the last month, leading to concerns about higher inflation. This is something that the Federal Reserve is actively trying to avoid. According to Moody’s Analytics Chief Economist Mark Zandi, the rising oil prices could potentially be problematic. While everything seems to be consistent with a soft landing, the continuous increase and maintenance of high oil prices could pose a problem.
UAW Strike and its Impact on the Economy
Zandi also discusses the UAW strike against the Big Three automakers (F, STLA, GM). He believes that for the strike to have a significant impact on the economy, it would have to drag on for a long period of time. However, Zandi does not consider the strike to be a major concern compared to other factors.
Government Shutdown Looms
Among the list of worries, Zandi places oil prices at the top and a potential government shutdown as the second concern. He states that a government shutdown is more than likely to happen, and the political pressure surrounding it is expected to intensify quickly.