Federal Reserve Chairman Kevin Warsh inherits an economy bolstered by an AI investment boom but pinched by rising prices from the Iran war, a Fed survey showed on Wednesday, setting up a fight over an interest rate hike when he runs his first policy meeting in two weeks.
Most U.S. regions experienced higher inflation from late April to late May due to energy-related costs tied to the Iran war "with spillovers into shipping, packaging, groceries, and fertilizer," according to the Beige Book, a roundup of qualitative economic data from the Fed's 12 regional banks.
