PAKISTAN SAYS IRAN CONSIDERING U.S.-PROPOSED 15-POINT PLAN

Wall Street is downgrading US economic forecasts, citing inflation and rising unemployment, with recession odds increasing to 30% due to surging oil prices from the Iran war. Goldman Sachs predicts jobless rates will rise to 4.6% by 2026, while inflation may reach 3%. Economists like Nancy Vanden Houten of Oxford Economics note that the war’s impact is visible quickly, especially in gas prices. Meanwhile, Morgan Stanley revised its consumer spending forecast down to 1.7% growth.

David Neal, CEO of IFM Investors, warned that massive spending on artificial intelligence (AI) and the global energy transition will likely create inflationary pressures for decades. He highlighted that while the recent energy price surge was a wake-up call, ongoing investments in AI and energy transition are adding to long-term inflation. Neal pointed to the $650 billion in planned capital expenditures by major US tech companies for new data centers and AI infrastructure by 2026. He also mentioned fiscal deficits as another contributing factor to inflation.