At the outset of the war in Iran, the dollar surged, likely because of the typical “flight to safety” behavior. But more recently, it’s been taking a beating.
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Retail spending rose by 1.7% from February to March. Experts said people are spending their tax refunds and increasingly turning to credit — even for groceries.
Economists warn that as tax refund season ends and the war in Iran pushes prices higher across more categories, the long-running disconnect between how consumers feel and how they spend may finally start to close.
The war in the Middle East is pushing up inflation in the short term, but longer-term expectations are tamer. That’s relieved pressure on long-term bonds, though that could change if the war escalates.
The trucks and farm equipment that keep our economy moving run on diesel. That means small businesses like farms and pet supply companies have to adjust.
