Analyst: The market is currently most concerned about how long oil prices will remain high

格隆汇 March 11｜Analyst Justin Lahart stated that U.S. inflation is basically in line with expectations, and the current issue is how long oil prices will remain high. The market is currently focused on the extent of the rise in oil prices, but for the broader economy, the more important question may be at what level prices will stabilize throughout the year. A rapid and sharp surge can be absorbed, leaving little lasting impact on inflation readings, and allowing the Federal Reserve to shift its focus back to the health of the labor market. However, persistently high oil prices will be difficult to shake off, as this will lock high costs into supply chains, squeezing profit margins of companies already under tariff pressure, and causing some firms to consider raising consumer prices. In this scenario, the Federal Reserve may face a tough trade-off between trying to control inflation and protecting economic growth.