There are early signs of renewed labor market strength during Iran war
New research from the Federal Reserve Bank of Boston indicates that a significant oil price shock, similar in magnitude to that caused by the ongoing Iran conflict, would now have a minimal impact on national employment. While inflation would increase substantially, the U.S. economy's structural changes over the past 50 years have made it more resilient to energy disruptions affecting jobs. This shift means central banks may need to focus more on managing inflation rather than concurrent employment risks. AI
