Economist Jon Faust, a former senior advisor to Fed Chair Jerome Powell, believes that the equations surrounding a rate cut are now fundamentally altered as tensions flare in the Middle East.
What Happened: Faust, an economist who has advised former chairs Ben Bernanke and Janet Yellen before Powell, said that he believes the ongoing conflict in the Middle East could be the biggest external risk facing the Federal Reserve this year, during his interview with MarketWatch late last week.
Israel-Iran tensions are a “major wild card” that could rattle business and consumer confidence and potentially tip the U.S. economy into a slowdown, Faust said, adding …