Economist Henriette Treyz told MS NOW on Saturday that average Americans can look forward to paying the economic price for the Iran war for years to come, even as the Trump administration claims gas prices will drop precipitously in just “a few more weeks.”
“You said if the bombing ended today, it would still take about 200 days for prices to even get back to normal. Why would it take so long?” asked MS NOW’s Erielle Reshef, in for Alex Witt.
“Yeah, that’s exactly right,” Treyz said. “And I’d compound that by saying the CEO of United Airlines just came out and said that they’re planning for $175 a barrel crude, and the $100 and up price range is going to be with us till 2027. So ,if you’re trying to buy an airline flight — if you’re trying to do anything, the costs of this war are going to trickle down across the entire economy and it’s going to cascade for literally years to come. The 200-day figure assumes that the Strait [of Hormuz] opens tomorrow. And I think we both know that that’s not going to be the case.”
“A new article says that, as you mentioned, it’s not just going to be gas prices affected here. We’re going to see retirement accounts already taking a hit. And in the future, interest rates could climb. We could see consumer sentiment start to fall here. How problematic is all of this?” Reshef asked.
“It’s hugely problematic,” Treyz answered. “The markets were pricing in Fed rate cuts that would help homeowners — it would help you get a loan for your business and lower the cost of living, help out with the affordability narrative. Due to the war and the tariffs that, by the way, could come back in eight weeks time, we are now no longer pricing in the potential for a rate cut from the Federal Reserve for the rest of this year.”
The economist added, “So, any relief that we were about to get — certainly relief that we were hoping to get back in 2025, even as we digested some of the tariff stuff — has now been completely stripped away. So, higher interest rates, higher gas prices, higher food prices, jet prices, semiconductor prices. I mean, you name it, it’s across the economy now.
Watch above via MS NOW.
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