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LVMH results point to prolonged pressure across the luxury market, says GlobalData

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In a strategic move to solidify family control over the LVMH luxury conglomerate, Bernard Arnault, the world's wealthiest individual, has elevated two more of his children to the company's board of directors.

Disappointing full-year results from LVMH suggest that the global luxury sector is facing more than a short-term slowdown, with challenges likely to persist into 2026, according to new analysis.

Commenting on the figures for the year ending 31 December 2025, Sharon Iles, senior apparel analyst at GlobalData, said the performance underlined “persistent struggles within the overall luxury market”.

LVMH reported a 4.6% fall in full-year revenue to €80.8bn, while fourth-quarter sales declined by 5.1%, marking a deterioration compared with the third quarter. Investor concerns over the outlook sent the group’s share price down by around 7% in early trading.

Chief executive Bernard Arnault struck a cautious tone, warning that 2026 would be challenging and signalling tighter controls on costs and expenses.

Regional performance remained uneven. Asia excluding Japan saw organic sales fall 4%, underperforming the group average as consumer spending in China remained subdued amid ongoing economic headwinds. Despite this, LVMH continued to invest heavily in the region, including the opening of a ship-shaped Louis Vuitton flagship in Shanghai in June 2025 and a new Dior store in Beijing in December, both of which have begun to gain traction.

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Japan was the weakest-performing market, with organic revenue down 12%, reflecting tough year-on-year comparisons and volatility in the yen. By contrast, the US held up relatively well, with flat organic growth driven by resilient spending from ultra-high-net-worth consumers. Europe’s organic sales fell by just 1%, but Iles noted that momentum weakened as the year progressed, partly due to reduced US tourism and softer consumer confidence.

By division, the Fashion and Leather Goods segment, LVMH’s largest,  saw revenue fall 8%, although the rate of decline eased over the course of the year. Creative initiatives have helped restore cultural momentum, with high-profile collaborations under Pharrell Williams at Louis Vuitton menswear and Jonathan Anderson’s first Dior collection generating strong buzz and positive critical reception. According to GlobalData, these creative successes are now beginning to translate into commercial gains, albeit gradually.

Selective Retailing was the group’s strongest-performing division, with sales flat year on year. Growth was supported by Sephora, which has continued to attract younger consumers and strengthen its position as a leading prestige beauty destination.

The Wines & Spirits division faced the most acute challenges, with sales down 9.4%. Weak demand in China and the US, combined with tariff-related operational issues, weighed heavily on performance.

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Iles concluded that while pockets of resilience remain, LVMH’s results highlight broader structural pressures on the luxury sector. Slowing demand in key markets, shifting consumer behaviour and geopolitical uncertainty suggest that the industry’s recovery is likely to be uneven and prolonged, rather than a rapid rebound.


Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

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10 questions for Michael Slavin of Northern Stage

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Business Live

The boss of the Newcastle theatre answers our questions

Michael Slavin is chief executive of Northern Stage.

Michael Slavin is chief executive of Northern Stage.(Image: Northern Stage)

Michael Slavin is chief executive of Northern Stage, the largest producing theatre in the North East. Having previously held senior leadership roles including chief operating officer at 11Arches, the charity behind Kynren, and interim chief executive of York Theatre Royal.

What was your first job (and how much did it pay)? I started my first ‘proper job’, that wasn’t a paper round, on the day of my 16th birthday. It was at the Co-op in the village I grew up in, and I got paid £2.32 per hour. It’s so long ago that we got paid weekly, by cheque!

What is the best advice or support you’ve been given in business? I’ve been fortunate to work with some brilliant people, and I’ve learned a lot from listening to and observing them. An early boss of mine always said the secret to a great career was to keep moving forwards. Whatever happens, whatever you face, keep putting one foot in front of the other and going forward. It might sound simple, but it’s served me well.

What are the main changes you’ve seen in your business/sector, and what are the challenges you’re facing? This is tricky, as I’ve worked across sectors, but the wage stagnation that occurred through the 2010s, which led into the pandemic and then the explosion in inflation that followed, has definitely been hard for everyone. In theatre, we rely on our audiences having the money and the desire to come to productions, and on public subsidy to keep making the work that we do. Both of those things come under pressure when there is no growth in the economy. That said, theatre has seldom been more important than it is now as an engine for empathy, a place of joy, and a shared space. So whatever the challenges, we keep going.

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What would your dream job be? I’m sorry to be that guy, but my current job is the answer.

What advice would you give to someone starting out a career in your sector? Work hard, ask questions, build a network – but most importantly, find the fun. It is a privilege to work in the arts and we reach people across society. If we can’t take pleasure and joy in getting productions on stage and delivering our outreach programmes, then we’re doing it wrong.

What makes the North East a good place to work? The people. The welcome I’ve received in Newcastle and beyond has been extraordinary. The team at Northern Stage have been kind and positive (and forgiving of all my questions!), and I’ve met people across the city who have been warm and helpful, but also driven to make Newcastle all it can be. It’s been phenomenal, and I’m excited for all the city is, and all it can be.

How important is it for business to play a role in society? To me, it is vitally important. Society is not a given; it’s something we all have a duty to work at, support, and maintain, and that comes with responsibilities. That could be through job creation, skills delivery, funded places, or partnership working, but businesses can, and should, engage with local people and support opportunities.

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Outside of work, what are you really good at? I’m a keen home cook and love baking with my two daughters. Our speciality is banana bread, but they’re getting to the stage where they can do it without me, so I need to learn some new recipes!

Who would play you in a film about your life? What a question! I did a straw poll of some friends and the answer is… Nelson Franklin (Robby in New Girl), largely because we are both tall and wear glasses.

Which three people would you invite to a dinner party, and why? This is a big question, so I’ve limited myself to people who are alive: Paul McCartney, because he’s a genius and a Beatle; Zadie Smith, who is a generationally talented author and a brilliant essayist; and Yas Rana, who is a prolific cricket journalist and podcaster. There’s no way you could have a dull conversation with those three around the table!

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U.S. housing markets where million-dollar listings are standard

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U.S. housing markets where million-dollar listings are standard

Kite aerial of Brant Point and harbor and Coatue, Nantucket, MA.

J. Greg Hinson, Md, Www.ackdoc.com | Moment | Getty Images

The tiny island of Nantucket, Massachusetts, is home to some 14,000 year-round residents. Joining their ranks will cost you at least $1 million, according to a new list of luxury housing markets by Realtor.com.

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Nearly all of Nantucket’s active listings are priced at $1 million or higher with a median listing price of $4.08 million, the real estate platform found. The island averages 138 million-dollar listings a year, according to the report.

Vineyard Haven, a community within neighboring Martha’s Vineyard, Massachusetts, has the second-highest concentration of million-dollar listings at 90% of the active listings with a median listing price of $2.4 million. Jackson, the principal town of the Jackson Hole valley in Wyoming, boasts the third-highest median price at $1.75 million.

Realtor.com identified 13 U.S. housing markets where at least half of active listings were priced above $1 million but with fewer than 500 such listings. Anthony Smith, senior economist at Realtor.com, said the list was designed to highlight “pure luxury” markets rather than areas that happen to reflect high regional housing costs.

Most of these housing markets are defined by scarcity, according to Smith. The front-runners, Nantucket and Vineyard Haven, are prime examples as they’re both located on islands.

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“You have finite land, strict building and preservation codes, and that combination sets a real premium on what’s available,” he said.

This scarcity applies to noncoastal hubs such as Jackson, too, he said, where land is abundant but much of it is earmarked for conservation. Only 3% of land in Jackson Hole is privately owned.

While five of the luxury hubs identified by Realtor.com are in California, the rest are scattered across the country, from Kapaa, Hawaii, to Hailey, Idaho. A notable inclusion on the list is Petoskey, Michigan, where 53% of active listings are priced over $1 million. While it doesn’t carry the same name recognition as Nantucket or Napa, the Lake Michigan town checks a lot of boxes for deep-pocketed buyers, Smith said.

“When you look at what defines a luxury market, it’s all there: waterfront views on Little Traverse Bay, ski access in the winter, resort-style living,” he said.

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He added that Petoskey is one of the more affordable markets on the list with a median listing price of $1.1 million.

The top 1% of Petoskey homes — representing the ultra-luxury market — start at just under $8 million, while the same threshold starts at nearly $59.2 million in Rifle, Colorado (also on Realtor.com’s list), about 70 miles away from Aspen.

While high-income consumers are propping up spending in travel and other categories, the luxury housing market is showing signs of softness like the overall housing market, according to Smith.

The luxury threshold, or 90th percentile of homes, stood at $1.25 million nationally in March, down 2.9% year over year, while the overall median price is down 2.2% annually, according to Realtor.com.

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Prices are firming up into the spring across the housing spectrum, however, with the luxury threshold up 3.7% and the overall market rising 3% from February.

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Is Gmail Down Now? No Major Outages Reported as of April 9, 2026, Despite Routine User Complaints

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Google Gmail

Gmail, Google’s ubiquitous email service used by billions worldwide, showed no signs of a widespread outage Thursday as independent monitoring sites and Google’s official status dashboard confirmed all systems operational.

Google Gmail

Real-time trackers like Downdetector and IsItDownRightNow reported only normal, low-level user complaints typical for a service handling enormous daily traffic volumes. Google Workspace Status Dashboard listed Gmail as fully available with no active incidents as of April 9, 2026. Any reported difficulties appeared isolated or related to individual user connections rather than a platform-wide failure.

The surge in “is Gmail down” searches on Thursday echoed a common pattern: users experiencing brief sync delays, login hiccups or delivery lags often assume the worst, especially during peak morning hours when professionals check inboxes globally. However, checks across multiple platforms confirmed Gmail’s core functions — sending, receiving, logging in and accessing via web or mobile apps — remained intact.

Google’s official dashboard, which provides real-time visibility into Workspace services including Gmail, showed green status across all regions. No service disruptions or advisories were posted for April 8 or 9. The last notable Gmail-related incident occurred on Jan. 24, 2026, when spam filters temporarily failed, causing misclassification of emails and extra warnings in inboxes. Google resolved that issue within hours, and no similar events have surfaced since.

Gmail powers personal accounts for consumers and serves as the backbone of Google Workspace for businesses, schools and governments. With more than 1.8 billion active users estimated in recent years, even minor perceived issues can trigger widespread online speculation. Yet Thursday’s chatter did not reach levels associated with true outages, such as the brief disruptions seen in early 2026 or previous years.

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Common troubleshooting steps recommended by Google often resolve most user-reported problems: checking internet connectivity, updating the Gmail app, clearing browser cache, or trying the web version at mail.google.com. Many complaints stem from local network congestion, device settings, VPN conflicts or temporary delays in email delivery rather than server-side failures.

Google has invested heavily in infrastructure resilience, with data centers worldwide and sophisticated redundancy systems. The company’s global network helps minimize downtime, though the sheer scale of operations means occasional localized glitches occur. In 2026, Gmail has maintained high uptime, with only isolated incidents like the January spam filter anomaly and minor regional throttling discussions earlier in the year.

Earlier in 2026, some users experienced challenges related to authentication changes. Google fully retired Basic Authentication for Gmail in 2025, requiring OAuth 2.0 for third-party email clients. Microsoft’s staggered timeline for similar changes created temporary confusion for users managing multiple accounts, but those transitions concluded without major service interruptions.

Regional email issues surfaced briefly in late 2025 and early 2026, affecting Gmail alongside Outlook and Yahoo in some areas due to infrastructure strain or throttling. Those events resolved quickly, and no recurrence appeared on April 9.

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For businesses relying on Google Workspace, admins can check the detailed Service Health dashboard in the admin console for tenant-specific insights. Consumer users benefit from the public status page and community forums for real-time feedback.

Gmail’s evolution continues with AI-powered features like Smart Compose, spam protection enhancements and integration with Gemini. These additions increase system complexity but have not led to significant reliability issues in recent months. Google routinely rolls out updates, sometimes causing brief compatibility hiccups that users mistake for outages.

In Seoul and other international locations, access depends on local networks and any regional restrictions. Thursday checks showed normal performance across major regions, including Asia-Pacific.

Industry experts note that true Gmail outages trigger rapid spikes on Downdetector — often tens of thousands of reports within minutes — accompanied by official acknowledgments from Google. In contrast, April 9’s reports remained in the low hundreds, consistent with baseline noise for a service of Gmail’s magnitude.

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Users facing persistent problems should:

  • Verify internet connection stability.
  • Update the Gmail app or browser.
  • Try incognito mode or a different device.
  • Check Google Workspace Status Dashboard.
  • Contact support through the app or help center for account-specific issues.

Google encourages reporting ongoing difficulties so engineering teams can investigate. Most cases resolve without intervention as transient network conditions improve.

The episode underscores the high expectations placed on always-available digital services. In an era of remote work and instant communication, even short delays in email access can disrupt productivity and spark frustration. Gmail’s reliability record remains strong overall, with uptime consistently exceeding 99.9% in recent analyses.

Google Workspace, which includes Gmail, Drive, Meet and other tools, serves millions of organizations. Any perceived downtime in one component can cascade into broader concerns, but Thursday’s data pointed to business as usual.

Looking ahead, Gmail will likely see continued enhancements, including stronger AI filtering and security features. Users should keep apps updated and enable two-factor authentication to minimize personal disruptions.

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As of late Thursday in Seoul time, Gmail operated normally according to all major monitoring sources. Scattered user reports did not indicate a systemic problem, and Google had issued no alerts.

For the most accurate status:

  • Visit the Google Workspace Status Dashboard at workspace.google.com/status.
  • Check Downdetector.com/status/gmail for crowd-sourced reports.
  • Use the Gmail app or mail.google.com directly.
  • Follow official channels for any announcements.

In summary, Gmail was not down on April 9, 2026. Any individual issues likely stemmed from local factors rather than a service outage. Google’s infrastructure continues to support billions of emails daily with minimal interruption, reinforcing its position as one of the world’s most reliable communication platforms.

This situation highlights the interconnected nature of modern digital life. When email falters for even a moment, the ripple effects highlight our dependence on cloud services. Yet Gmail’s track record demonstrates robust engineering that keeps most users connected without incident.

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Barclays reiterates Overweight on BridgeBio stock, cites Attruby strength

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Barclays reiterates Overweight on BridgeBio stock, cites Attruby strength

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14-Year Singleton to Heartbreaking Split

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Rachel Gilmore

SYDNEY — Rachel Gilmore emerged as one of the most relatable and emotionally resonant brides on the 13th season of “Married at First Sight Australia,” captivating viewers with her warmth, vulnerability and journey from a self-described long-time singleton to a participant willing to marry a stranger on national television.

Rachel Gilmore
Rachel Gilmore

The 35-year-old recruitment team leader from Victoria brought heart and honesty to the Channel 9 experiment, which filmed in 2025 and aired into April 2026. While her on-screen romance with groom Steven Danyluk offered moments of hope and growth, post-experiment realities proved more complicated. Here are 10 essential things to know about Rachel Gilmore’s MAFS 2026 experience, drawn from the show, her own words and latest updates.

  1. Rachel was single for 14 years before MAFS. Entering the experiment, Gilmore openly shared that she had not been in a committed relationship for over a decade, relying instead on occasional “situationships” that left her emotionally drained. In her audition tape, she revealed a dating “game plan” born from repeated rejection and heartbreak. “It is extreme,” she told interviewers, explaining how one or two bad dates could leave her devastated for months. Her decision to join MAFS marked a bold step to break the cycle.
  2. She nearly didn’t apply due to crippling insecurities. Gilmore has spoken candidly about years of feeling unworthy after repeated romantic disappointments. In pre-show interviews, she admitted the idea of marrying a stranger felt overwhelming, yet she pushed through, hoping experts could help her find genuine connection. Her vulnerability resonated with many viewers who saw their own struggles reflected in her story.
  3. Matched with Steven Danyluk in the first wedding. Rachel was paired with Steven, another long-time singleton, in one of the season’s earliest ceremonies aboard a Sydney Harbour superyacht. The wedding had awkward moments — Steven initially struggled with compliments and a kiss — but Rachel’s bubbly personality and “maternal energy” helped ease tensions. She described him as bringing laughter and light into her life despite early hurdles.
  4. Intimacy Week delivered one of her toughest moments. The couple faced significant challenges during intimacy-focused tasks. Steven’s reluctance to be physically affectionate, including pulling away from a kiss, left Rachel feeling rejected and exposed. She later recounted becoming “emotionally raw” and needing space. Viewers reacted strongly, with many criticizing Steven’s handling of the situation while praising Rachel’s openness.
  5. A crude joke scandal tested their bond. Unseen footage from a dinner party showed Steven joking explicitly with fellow bride Bec Zacharia about his intimacy with Rachel. The clip surfaced during “After the Dinner Party,” leaving Rachel mortified and questioning whether Steven had her back. She articulated feeling unsupported, highlighting communication gaps that plagued the pair throughout the experiment.
  6. They reached Final Vows and committed to trying. Despite setbacks, Rachel and Steven attended Final Vows in early April 2026 episodes. Both delivered emotional speeches affirming growth and commitment. Rachel expressed finding something “rare” in Steven, while he spoke of diving in “headfirst, fearless.” They left the experiment intending to date in the real world, with Rachel discussing moving in together and Steven considering relocation.
  7. The relationship did not survive post-filming. Although they departed Final Vows as a couple, multiple insiders report the romance ended shortly afterward. Sources told outlets that Steven got “cold feet” about plans to visit Rachel in Melbourne or relocate from Sydney. Long-distance issues proved insurmountable, and Steven reportedly failed to follow through on commitments. No joint social media tributes appeared, adding to speculation.
  8. Rachel has been spotted moving on with a Big Brother star. In late March 2026, photos emerged of Gilmore looking cosy with “Big Brother” contestant Bruce Dunne. The sighting fueled rumors she was exploring new connections after the split. While details remain limited, the outing suggested Rachel was focusing on her own happiness following the MAFS whirlwind.
  9. She works as a recruitment team leader and values personality over looks. Outside the spotlight, Gilmore holds a professional role as a team leader in recruitment. On the show, she emphasized seeking deep emotional compatibility rather than superficial attraction. Her “heart of gold” and vibrant personality earned praise from experts John Aiken and Mel Schilling, who highlighted her maternal warmth and willingness to grow.
  10. Rachel’s Instagram and post-MAFS life reflect resilience. With the handle @rachlea_x, Gilmore shares glimpses of her journey, including MAFS highlights and personal reflections. Following the reunion special airing April 13, she is expected to address the split and any new developments. Fans continue to root for her, viewing her as a standout for authenticity in a drama-filled season. She has expressed gratitude for the experience while acknowledging its emotional toll.

Rachel Gilmore’s arc on MAFS Australia 2026 encapsulated the experiment’s core promise and pitfalls: the hope of expert-matched connection colliding with real-world complexities like distance, differing commitment levels and unresolved insecurities. Her openness about past dating struggles and on-screen emotional honesty made her a fan favorite, even as the relationship with Steven ultimately faltered.

Filmed months before airing, the season allowed post-experiment developments to leak gradually, heightening viewer engagement. While only a few couples, such as Stella and Filip, appear positioned for lasting success, Rachel’s story stood out for its relatability. Many viewers saw echoes of their own romantic challenges in her 14-year single streak and determination to try something radical.

The upcoming reunion promises further insight into Rachel’s perspective on the breakup and any lingering feelings toward Steven. Past reunions have featured raw confrontations and reflections; this year’s is anticipated to address long-distance failures and personal growth among participants.

Gilmore’s participation also sparked broader conversations about modern dating, body image, self-worth and the pressures of reality television. She addressed size and body image discussions on the show, pushing back against superficial judgments and advocating for personality-driven connections.

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As the season concludes, Rachel joins a long list of MAFS alumni who gained public profiles while navigating intense scrutiny. Her resilience — choosing vulnerability on camera despite deep fears of rejection — has inspired messages of support across social media.

Experts note that MAFS success rates remain low overall, with most couples parting ways after the cameras stop. Rachel’s experience underscores the gap between the controlled experiment environment and everyday realities, particularly when geography and differing readiness levels come into play.

For fans, Rachel represented hope that even after years alone, openness to love could yield meaningful growth. Though her MAFS romance did not endure, her journey highlighted courage, self-reflection and the importance of clear communication — lessons that extend far beyond the show.

As the April 13 reunion approaches, attention will turn to how Rachel processes the outcome and what comes next in her personal life. Whether through new relationships, career focus or continued advocacy for authentic connections, her story remains one of the season’s most compelling.

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In the competitive reality television landscape, participants like Rachel bring humanity to high-drama formats. Her willingness to share insecurities and celebrate small victories provided balance amid the season’s more explosive moments.

Rachel Gilmore may not have found her forever match on MAFS Australia 2026, but she gained national attention, personal insights and a platform to inspire others facing similar romantic hurdles. As she steps forward post-reunion, many will watch to see the next chapter in her journey toward the lasting connection she sought.

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Ex-Rio Tinto CEO’s deep-sea mining firm to merge with Odyssey in $1 billion deal

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Ex-Rio Tinto CEO’s deep-sea mining firm to merge with Odyssey in $1 billion deal


Ex-Rio Tinto CEO’s deep-sea mining firm to merge with Odyssey in $1 billion deal

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How Iran plans to tax oil tankers passing through Strait of Hormuz

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How Iran plans to tax oil tankers passing through Strait of Hormuz
Iran is reportedly planning to increase its oversight of the Strait of Hormuz during the current two-week ceasefire. The proposal includes a system where oil tankers would pay transit fees in cryptocurrency and undergo detailed checks.

Hamid Hosseini, spokesperson for Iran’s Oil, Gas and Petrochemical Products Exporters’ Union, stated that authorities intend to monitor all vessels passing through the waterway. “Iran needs to monitor what enters and exits the strait to ensure the ceasefire period is not used to move weapons,” Hosseini said. He added that while passage will remain open, inspections may slow transit times.

Under the proposed plan, ships would email their cargo information to receive a transit fee assessment, reportedly set at $1 per barrel. Payments would then be made using digital currencies. Hosseini noted that after the review, vessels would have a limited time to pay in bitcoin, a method designed to prevent tracing or seizure under sanctions.

This proposal indicates Tehran’s effort to maintain influence over a critical oil route while ceasefire talks continue. Reports also suggest Iran is encouraging vessels to sail closer to its coast, causing concern among Western and Gulf-linked operators.

Access through the Strait of Hormuz has become a central issue in efforts to extend the temporary ceasefire. Iran is pushing for tighter control, while Gulf nations and Western allies are opposing the move. U.S. President Donald Trump has stated that the ceasefire depends on Iran ensuring the “complete, immediate, and safe” reopening of the strait. Iran, however, has indicated that any reopening would follow a new security protocol coordinated with its military.

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The uncertainty has led to hundreds of ships being stranded in the region. Estimates suggest between 300 and 400 vessels are waiting to leave the Gulf, with one industry executive comparing the buildup to a “traffic jam at sea.” Major shipping companies remain cautious. Maersk stated it is urgently assessing the evolving situation but warned that the ceasefire has not yet guaranteed safe passage. Experts believe that even under regulated conditions, only 10 to 15 ships may pass through daily, a significant reduction from the usual average of around 135, meaning delays could continue.
Any move granting Iran greater control over the strait is considered unacceptable by Gulf countries like Saudi Arabia, Qatar, and the UAE, given the route’s importance to global oil supplies. Ali Shihabi, a commentator with close ties to Saudi leadership, said uninterrupted access to the waterway must remain the priority. With negotiations ongoing and tensions persisting, the Strait of Hormuz remains at the center of a complex standoff involving security, diplomacy, and global energy flows.

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Energy Transfer: 7.1% Yield And Potential Export Tailwinds Support Buy Case

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Energy Transfer: 7.1% Yield And Potential Export Tailwinds Support Buy Case

Energy Transfer: 7.1% Yield And Potential Export Tailwinds Support Buy Case

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Cleveland Fed president warns rate hike possible if inflation stays high

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Cleveland Fed president warns rate hike possible if inflation stays high

A Federal Reserve policymaker is warning that it could make sense to raise interest rates if inflation remains elevated above the Fed’s 2% target amid uncertainty over the duration of the oil and gas price shock.

Federal Reserve Bank of Cleveland President Beth Hammack said in an interview with The Associated Press that she sees the central bank leaving the benchmark federal funds rate at its current level of 3.5% to 3.75% “for quite some time.”

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Hammack also cautioned that while the Fed’s next rate move could be a cut due to labor market concerns, there is a possibility that it could be to hike rates to curb stubborn inflation.

Cleveland Fed President Beth Hammack speaks

Cleveland Fed President Beth Hammack said that the Fed may need to hike rates to tame inflation, or may be compelled to cut rates to support the labor market. (Victor J. Blue/Bloomberg via Getty Images)

“I can foresee scenarios where we would need to reduce rates… if the labor market deteriorates significantly,” Hammack told the AP. “Or I could see where we might need to raise rates if inflation stays persistently above our target.”

NY FED PRESIDENT JOHN WILLIAMS WARNS IRAN-DRIVEN OIL SPIKE COULD RIPPLE THROUGH ECONOMY

Hammack noted that the Cleveland Fed’s estimates of inflation show that it could increase to 3.5% in April. That would amount to the highest inflation reading since 2024 and a significant increase from the consumer price index’s most recent reading of 2.4% in February.

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“Inflation has been running above our target for more than five years now,” Hammack said in the interview, adding that a further increase would mean inflation is “moving in the wrong direction, away from our 2% objective.”

Hammack said that the surge in gas prices caused by the Iran war is “the No. 1 thing” she hears about when talking to people within her district, adding that she and other policymakers “know that causes a lot of pain personally, as it eats up a bigger and bigger share of people’s paychecks. So it’s important for us to stay focused on it.”

POWELL WARNS OF NEW ENERGY SUPPLY SHOCK AS GAS PRICES SURGE: ‘NO ONE KNOWS HOW BIG IT WILL BE’

The Cleveland Fed president – who is also a voting member of the central bank’s Federal Open Market Committee (FOMC) that makes interest rate decisions – said that the Iran war’s economic impact will depend on how long it lasts.

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If higher energy costs prompt consumers to pull back on their spending, it could slow economic growth and cause businesses to conduct layoffs, prompting the Fed to cut interest rates to support the labor market.

IRAN WAR COULD PUSH INFLATION HIGHER THIS YEAR, GOLDMAN SACHS SAYS

Jerome Powell speaks at an event in Washington, DC.

Federal Reserve Chair Jerome Powell said last month that it was uncertain how the Iran war would impact the economy. (Amanda Andrade-Rhoades/Reuters)

Fed policymakers will get two sets of fresh inflation data this week, starting with the Commerce Department’s personal consumption expenditures (PCE) index for February which will be released on Thursday. The PCE index is the Fed’s preferred inflation gauge and the February edition of the report was delayed by the government shutdown.

Additionally, the Labor Department will release the consumer price index (CPI) inflation report for March on Friday.

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The FOMC will hold its next monetary policy meeting on April 28–29, when it will announce whether the benchmark interest rate will be held steady, increased or reduced.

Policymakers left interest rates unchanged at their most recent meeting in March, after doing the same at the previous FOMC meeting in January.

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Morgan Stanley predicts bull market for Indian stocks

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Morgan Stanley predicts bull market for Indian stocks

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