Tyler, Texas – Dr. Ray Perryman, an economist based in East Texas, explained that the recently concluded midterm elections give Congress a chance to address rising costs that affect families across the state. He noted that lawmakers could adjust tariff policy and take steps related to the overseas conflict, but the benefits of such actions are unlikely to be immediate.
Policy levers and timing
Perryman said the newly elected members of the House will not take office until January, and the timing of any economic relief will depend on how quickly new policies are enacted. \”I think a message has really been delivered to both parties that people want action, people want solutions,\” he said.
He added that even before the new Congress begins, current members might feel pressure to act, especially since the president retains veto power, though Congress could override a veto if necessary.
Inflation drivers and the Fed
The economist warned that the Federal Reserve’s ability to curb inflation is limited when price pressures stem from external factors such as the situation in Iran, tariff costs and labor shortages. \”The Fed can certainly help marginally, but this is not the best type of inflation for the Federal Reserve to be fighting,\” he said.
Energy costs and the war
Perryman highlighted that a quicker resolution to the war in the Middle East could lower oil prices, which would in turn reduce diesel costs for drivers. He noted that oil prices have fallen about $8 per barrel and that markets seem to be pricing in an earlier end to the conflict, though he cautioned that markets are an imperfect indicator.
While Congress could move to lower diesel costs now, Perryman said such measures would be difficult to implement without broader legislative action.
Looking ahead
Overall, Perryman expects the most noticeable economic effects of the midterm outcomes to emerge after the new Congress convenes in early 2027, once policy changes have time to filter through the economy.
Original reporting: KLTV 7 Tyler (news) — read the source article.
