Sen. John Kennedy has two major worries as Iran conflict continues

Daily Caller News Foundation

Republican Louisiana Sen. John Kennedy said Friday that he is closely watching the economic impact of the ongoing conflict in Iran.

National Economic Council Director Kevin Hassett said Tuesday that the economic strain from the U.S.-Israeli conflict with Iran is “the last of our concerns right now,” stressing that the U.S. economy remains fundamentally sound and unlikely to be significantly disrupted even if the conflict persists. Appearing on CSPAN’s “Ceasefire,” host Dasha Burns asked Kennedy for his thoughts on the Trump administration’s messaging.

“I’m a realist. I’m worried about the impact of the war on inflation. Is that a reason not to do what you have to do to protect your country? Which I thought we needed to do in this instance, no. But if we’re going to be fair, yeah, inflation. Inflation is a real concern,” Kennedy told Burns.

Kennedy said that a prolonged war could drive up prices, though he expects oil and inflation numbers to stabilize if the conflict is short-lived.

WATCH: 


“I’m worried about the labor market. We’re not adding jobs. We’re not losing jobs. The unemployment rate has stayed pretty solid. But interest rates matter, and this war will probably contribute, if it’s prolonged, to inflation. Now, if it’s not prolonged, I think the numbers, like the price of oil, I think they’ll come back down,” Kennedy said.

The tensions in the Middle East are pushing oil prices higher, with disruptions through the Strait of Hormuz threatening roughly 20 % of global oil supplies.

“The closure of the Strait of Hormuz has put the issue of crude storage capacity in the Middle East Gulf front and center,” Kayrros Chief Analyst Antoine Halff wrote on LinkedIn. “If oil producers reach ‘tank tops’ for lack of export outlets, then they have to curtail output.”

Higher energy costs are already squeezing American consumers and driving inflationary pressures. Younger Americans are feeling the pinch most severely, facing higher costs for essentials amid rising fuel and consumer prices.

All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact [email protected].

DONATE TO BIZPAC REVIEW

Please help us! If you are fed up with letting radical big tech execs, phony fact-checkers, tyrannical liberals and a lying mainstream media have unprecedented power over your news please consider making a donation to BPR to help us fight them. Now is the time. Truth has never been more critical!

Success! Thank you for donating. Please share BPR content to help combat the lies.

Comment

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. Thank you for partnering with us to maintain fruitful conversation.

BPR INSIDER COMMENTS

Scroll down for non-member comments or join our insider conversations by becoming a member. We'd love to have you!

Leave a Reply

Latest Articles