El Nino could add to US inflation pressures in 2027, San Francisco Fed paper warns

A new study from the San Francisco Federal Reserve warns that the current strong El Niño weather pattern could lead to higher inflation in the US in 2027. This is because El Niño can drive up food and energy prices, which are major contributors to inflation. The added pressure on inflation could force the Federal Reserve to raise interest rates, which would have significant implications for the US economy.

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A San Francisco Fed study warns that the current strong El Niño could drive US inflation up. This could lead to higher interest rates and affect the economy.

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