Federal Reserve rate cuts under threat from US port strike

S&P Global Market Intelligence comments were reported in the Wall Street Journal (gated).

In brief:

• many importers and manufacturers pulled forward orders to try to get ahead of the looming East Coast port strike now under way
• if not resolved soon, the strike could eventually affect the shipping of 40% to 50% of U.S. imports
• disruptions would surely put upward pressure on goods prices
• in turn complicating the Federal Reserve’s ambition to wind down its fight against inflation
• higher shipping costs to the East Coast in anticipation of the strike have already contributed an inflationary impulse

This article was written by Eamonn Sheridan at www.forexlive.com.