Boston Fed Study Shows Oil Shock Impact on U.S. Inflation Down to 1.5% vs 2.2% in 1970s

According to the Federal Reserve Bank of Boston, domestic oil production has significantly reduced the impact of energy price shocks on U.S. inflation and employment since the 1970s. The Boston Fed's research shows that an oil price shock similar to the current Iran-related disruption would push the U.S. personal consumption expenditures (PCE) price index up 1.5 percentage points over the following year, compared to 2.2 percentage points during the 1970s.
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