Institution: Oil Price Shock Could Boost Fed Inflation Outlook, Powell to Emphasize Patience

BlockBeats News, March 13th: Bank of America stated that the Fed would have to deal with another supply shock - a surge in oil prices. In the Summary of Economic Projections (SEP) released ahead of the March Fed meeting, overall and core inflation forecasts may be revised upward.

The Bank of America report stated: "If long-term growth expectations are also revised upward, we expect the median dot plot for long-term interest rates to shift slightly higher." In this scenario, the bank believes Fed Chair Powell may acknowledge the risk of stagflation while emphasizing a cautious approach. (FXStreet)