Roubini: Over 50% chance of expanded Iran war could force Fed rate hike

Nouriel Roubini, an NYU professor and former White House economist known as Dr. Doom, stated there is a greater than 50% probability that U.S. President Donald Trump will expand the war with Iran. According to Bloomberg, Roubini added that such an expansion risks triggering stagflation similar to that of the 1970s. He also pointed to the upcoming leadership change at the Federal Reserve, noting that the institution nearly lost its credibility in 2022 by mistiming interest rate hikes. Roubini suggested the new Fed chair may have no choice but to raise rates to avoid damaging their reputation at the start of their term.