NY Fed Index Shows Persistent Supply Chain Pressure
The New York Fed reported that global supply chain pressures remained high in May as the closure of the Strait of Hormuz continues to disrupt trade flows. While the index ebbed slightly to 1.77, officials warned that persistent logistical challenges and rising input costs are complicating the outlook for inflation and interest rates.
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The New York Fed Global Supply Chain Pressure Index fell to 1.77 in May from 1.82 in April. Readings remain near late 2022 levels as the U.S.-backed war with Iran disrupts trade. Persistent logistics bottlenecks threaten to keep global inflation elevated, complicating the path for central bank rate cuts.
