US Rail Strike Risks Inflation Boost at Worst Possible Time

  • Talks are ongoing with unions as Friday deadline looms
  • Freight bottlenecks could push prices higher after August jump
WATCH: Railroads and unions have until Friday to resolve a labor dispute that risks a crippling shutdown of the nation’s freight-rail network. President Joe Biden is now personally involved in negotiations.Source: Bloomberg
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The looming US rail strike threatens to push inflation even higher across the country after prices jumped more than expected last month.

About 125,000 workers could walk off the job if a deal isn’t reached by Friday’s deadline, with talks between rail companies and unions not showing signs of progress. The stoppage would be the largest of its kind since 1992, and it would snarl a wide range of goods transported by rail, from food to metal and auto parts.