The head of BofA's commodities and derivatives research underscores the potential for persistent economic disruption from higher-for-longer prices after the Iran war spurred an 80% run-up in oil prices this year.
If the Fed had to set its inflation target today, it would choose 3% or 4%, rather than 2%, but "it is very difficult to change a target when you have missed it for so long. ... The minute you do that, your credibility is hit even harder."
