Barclays: Oil Price Shock Eases, but Inflation Worsens on July 13

According to Barclays on July 13, inflation forecasts have deteriorated despite oil prices falling sharply from peaks during Iran conflicts. The bank said the Federal Reserve's policy path of maintaining steady rates rather than raising them has narrowed significantly in recent months, though this remains the bank's base case. Oil shocks fade, but inflation persists, the bank noted, because strong U.S. economic growth limits the Fed's ability to escape inflation pressures through falling energy prices alone.
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