"Global Economic Outlook at Risk Amid Middle East Conflict"

The conflict in the Middle East, particularly between Israel and Hamas, poses new risks to the global economic outlook. This comes as central bankers are already dealing with the economic fallout of the COVID pandemic and Russia's invasion of Ukraine. The duration and intensity of the conflict, as well as its potential spread to other parts of the region, could disrupt supply chains, drag down economic confidence, and lead to higher oil prices. The Federal Reserve may face challenges in deciding whether to raise interest rates and how long to keep rates elevated. The conflict could also impact bond yields and potentially spur a flight to safe-haven assets like U.S. Treasuries.