Summary

• The conflict in Iran choked the Strait of Hormuz, causing a widespread surge in energy prices.
• Based on the latest readings, US inflation is rising at the headline level and in other key components.
• Households are starting to feel the pinch of higher price levels, and the risks of slower economic growth are mounting.
• From a monetary policy perspective, supply shocks like the rising price of oil are hard to manage.

By Eric Winograd

With inflation rising, consumers are feeling the pinch and the Fed is weighing its options.

The conflict in Iran choked the Strait of Hormuz, causing a widespread surge in energy prices. Now, several months