The massive dock worker strike beginning Tuesday comes at an inopportune time for the U.S. economy, as the potential uptick in shipping prices comes ahead of the holiday season and as policy makers look to turn the page on inflation, though experts are split on whether the strike will have a major impact on inflation and the economy more broadly.
by Derek Saul
Forbes
Key Facts
– The strike by 45,000 members of the International Longshoremen’s Association along the East Coast could cost the U.S. economy $3 billion to $4.5 billion daily, according to estimates from Jefferies and JPMorgan.
– Though that headline number is certainly a concern, experts largely think significant fallout would only come if the strike lasts more than the “base case” of a “few days,” noted Bank of America analysts led by Nathan Gee, who simultaneously warned a “prolonged strike lasting a few weeks could drive global congestion levels to all-time highs.”
– Austan Goolsbee, the president of the Federal Reserve’s Chicago branch, told Fox Business he’s concerned if the strike “drags on” it could “raise the cost of doing business” and the impacts of such events “are never good.”