The Iran war and its impact on the global energy market will keep headline U.S. inflation this year well above the Federal Reserve’s projections, possibly necessitating policy action, according to a key global policy group. In its periodic update of economic conditions, the Organization for Economic Cooperation and Development forecast all-items inflation in the U.S. to be at 4.2% for 2026. The forecast is a sharp step up from the prior projection of 2.8%. Moreover, it is much higher than the 2.7% Fed officials estimated when they updated their own forecasts last week. The revision is due to two primary factors: the ... (full story)