Tyler Schipper, an associate professor of economics and data analytics at the University of St. Thomas, spoke with KARE 11 about the economic challenges facing the newly elected Congress as lawmakers seek to address affordability concerns. The report examines the factors influencing consumer costs, including gas prices, tariffs and interest rates.
From the story:
Professor Schipper says elected officials have little power over gas prices, but if the new Congress can find a way to end the war in Iran he says that could lower prices eventually, just not right away.
"Even if Iran ended the war tomorrow, countries who dipped into their reserves will need to replenish their reserves and that will put some upwards pressure on prices,” Schipper says.
The new Congress also doesn’t have a lot of control when it comes to interest rates.
These rates are largely determined by the Federal Reserve, which many experts believe will raise interest rates again in December.
"In the short term, the Federal Reserve is probably going to raise interest rates further and that's going to be painful for people who are looking for homes or have credit card debt,” Schipper says.
Economists also believe that the new Congress will face an uphill battle when it comes to tariffs.
