The 2 types of inflation the Fed can't control - and how Congress must protect your wallet

By Sameera Fazili & Joel Dodge

As permanent supply shocks drive up Americans' grocery and gasoline prices, lawmakers need to take a stand

The Iran war is disrupting the global supply chain and spiking inflation, saddling consumers and businesses with higher costs.

Supply-chain crises generate two types of inflation: "ripple-out" and "market power." But the Federal Reserve can't fix broken shipping lanes or corporate greed.

If it wasn't clear before the Iran war closed the Strait of Hormuz, it is undeniable now: The world has entered an era of supply shocks. Iran marks at least the third global supply-chain disruption over the past six years, including the COVID-19 pandemic and Russia's invasion of Ukraine. Whether caused by geopolitical conflict, health contagions or extreme weather, supply-chain crises will likely be a permanent fixture of the economy until global supply chains build in greater resilience.