KPMG's chief economist says the only clear way out of the Iran war for global economies is a 'deep recession'

Gas prices in Arlington, Virginia in early April sat above $4.00 a gallon.

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• Stagflation and labor-market risks are growing as the Iran war continues.
• KPMG chief economist Diane Swonk says the "only clear way out" for the economy is a "deep recession."
• Swonk says the Fed is in a bind because the economy is being hamstrung by supply-side constraints.

As the Iran war raises stagflation risks for the global economy, a "deep recession" may be the only way out...