The Consumer Price Index (CPI) rose 0.9% month-over-month in March, the largest monthly gain since June 2022, while the preliminary Index of Consumer Sentiment fell to an all-time low of 47.6 in April. Both data points were primarily driven by the effects of the U.S.-Iran war and the closure of the Strait of Hormuz.
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Forget margin or options. Here's how the pros trade QQQHowever, National Economic Council Director Kevin Hassett believes the economic impact of the war will be short-lived and will not affect long-term inflation. “I think this is a temporary distraction that will very, very quickly go away,” he said.
Hassett Sees 4–5% GDP Growth as U.S.-Iran Talks Loom
Hassett reiterated his projection that the U.S. economy will grow between 4% and 5% this year, citing deregulation and tax cuts. In addition, growth could accelerate in the second half of the year if the oil supply shock is resolved.
Officials from the U.S. and Iran are scheduled to meet in Islamabad over the weekend amid a two-week ceasefire. At the same time, traffic through Hormuz is still severely restricted as gas prices remain elevated.