WAR FUELS INFLATION, CLOUDS GLOBAL GROWTH OUTLOOK The Middle East conflict is pushing inflation higher and weakening the global economy, according to the Organisation for Economic Co-operation and Development. The OECD now sees G20 inflation at 4% this year, with U.S. inflation hitting 4.2%—well above previous forecasts. Growth has held up for now, thanks to strong early-year momentum, but risks are rising. The organization warns that prolonged energy disruptions could further lift prices, slow growth, and unsettle markets. Without the war, global growth projections would have improved; instead, forecasts remain subdued. Central banks are turning more cautious. The Federal Reserve is delaying rate cuts, while the European Central Bank may hike rates to contain inflation. Bottom line: higher energy costs and geopolitical uncertainty are keeping inflation elevated and limiting the global recovery.(*Walter Bloomberg)