Boston Fed Study Says U.S. Energy Shift Has Changed How Oil Shocks Affect Inflation

A new Boston Federal Reserve study released on Thursday said changes in the U.S. energy structure have reshaped how oil shocks are transmitted through the economy, potentially affecting the inflation outlook. According to NS3.AI, the study supports the view that the Federal Reserve can prioritize inflation control if prolonged conflict keeps inflation elevated. Separately, Morgan Stanley said the recent rise in oil prices reflects a short-term supply disruption and expects the Fed to keep interest rates unchanged throughout the year.