The 1970s oil-shock playbook needs an update: The inflation costs remain, but the employment risks appear far smaller than they did 50 years ago.
Why it matters: As the Iran war continues, there are early signs of renewed strength in the labor market.
If energy disruptions pose less of a risk to jobs, the challenge for central banks shifts from managing stagflation risks to guarding against renewed price pressures.
With summer driving season here, let's revisit two big questions: why isn't the global oil crisis even worse, and how long until economic damage from the Iran war gets even more acute?
Why it matters: There's persistent risk of much higher prices and expanding shortages.
President Trump plans to announce nearly $700 million in new federal support for coal-fired power and coal exports Thursday, Bloomberg first reported and the White House confirmed to Axios.
Why it matters: Trump officials are looking to revive the electricity source that has long been declining in the U.S., and coal production has also been mostly falling for almost two decades.
The Iran war has divided the global outlook into two tracks:
A modest slowdown if the conflict ends soon or a severe hit, with some economies near recession, if it drags on and the disruption deepens.
Why it matters: Either path leaves the global economy worse off than before the war, with slower growth and hotter inflation. The scenarios determine the scale of the damage.
Facing mounting scrutiny over data center water consumption, Google on Wednesday released a set of guidelines it says should become the industry standard.
Why it matters: Communities across the U.S. are increasingly pushing back against new data centers, often citing concerns about water use alongside rising power prices, local air pollution and noise.
