Economist Henrietta Treyz has issued a cautionary note regarding the potential ripple effects of President Donald Trump’s conflict with Iran, stating on Monday that the resulting spike in gas prices may soon lead to increased food costs.
Treyz, co-founder and director of economic policy at Veda Partners, described the impending “food inflation” as the “next shoe to drop” during an interview with Katy Tur on MS NOW.
Highlighting a significant shift, Treyz contrasted the economic conditions during Trump’s second term with those at the end of Joe Biden’s presidency.
She remarked on the stark differences, noting that the current administration inherited an economy characterized by ongoing prosperity, decreasing inflation, falling prices, and growth in the manufacturing sector.
Treyz lamented that during the AI boom, the economy seemed unstoppable, but now the situation has changed dramatically.
She pointed out that the cost of jet fuel has sharply increased, leading to shortages that have disrupted flights in Asia and prompted responses in Europe and the U.S. Treyz warned that these issues are just the beginning.
Predicting further price hikes, Treyz explained that anything requiring diesel or gasoline for transport, including products purchased at Walmart or groceries, will likely see cost increases.
She expressed concern over the long-term economic impact of the war and the missed opportunities for growth, noting that the economy is once again facing rising inflation, and the Federal Reserve is unable to lower interest rates. Treyz described the situation as disheartening.
