Economy likely faces just temporary setback from Iran war: survey [Yahoo! Finance]
WOLTERS KLUWER S/ADR (WTKWY)
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Source: Yahoo! Finance
Most corporate economists (59%) believe that higher inflation from the Iran war will prove temporary and that the U.S. economy will suffer just a slight setback from the conflict and expand 2.2% this year, Wolters Kluwer found in a monthly survey. Still, tension in the Persian Gulf prompted economists at companies ranging from Northern Trust to Ford Motor and Visa to Eaton Corp to raise the odds of a U.S. recession during the next 12 months to 35%, Wolters Kluwer said. With energy prices rising, they also pushed back their forecast date for an interest rate cut by the Federal Reserve, with 71% predicting that policymakers will trim borrowing costs after July. “The U.S. military action against Iran has the potential to both fuel inflation and depress economic growth, and the latest Blue Chip Economic Indicators survey shows shifts in these directions,” Wolters Kluwer said. “However, the effects are seen as temporary and less than overwhelming.” Dive Insight: Surging energy pri
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