Roubini: Over 50% chance of expanded US-Iran war, Fed may have to hike rates

Nouriel Roubini, the New York University professor and former White House economist known as "Dr. Doom," stated that there is a greater than 50% probability that U.S. President Donald Trump will expand the war with Iran. According to Bloomberg, Roubini warned that such an expansion risks triggering stagflation reminiscent of the 1970s. He also commented on the upcoming leadership change at the Federal Reserve, suggesting the new chairman may have no option but to raise interest rates. Roubini argued that the Fed nearly lost its credibility in 2022 by failing to hike rates in a timely manner, and a new leader would need to avoid damaging their reputation early in their term.