US Economic Forecast: May 2026
What are long-term effects of the oil price shock on the US economy?
Oil prices have climbed sharply, intensifying inflationary pressures in 2026. With West Texas Intermediate expected to hover near $88 per barrel, oil's contribution to PCE inflation is projected to reach 0.77 percentage points—a significant rise compared to 2022 levels. Yet, monetary tightening and an eventual reopening of the Strait of Hormuz are factors predicted to stabilize prices and ease inflation's hold.
Our latest US Economic Forecast report offers an in-depth look at the impact of high tariffs on the economy including the potential inflation rise, the role of foreign capital flows, the expected response of the Federal Reserve, and more.
Download the report today to learn how these economic shifts are likely to affect financial investing strategies and client relationships.
