- Fed’s Jefferson Says Rates Well Positioned Amid Uncertainty Bloomberg —
- Fed’s Jefferson: Labor Market Could Be Stabilizing Wall Street Journal —
- Fed's Goolsbee Cautious, Nervous About Economic Outlook Bloomberg —
- How the Iran war affects Americans' inflation expectations Axios —
- BlackRock's Rieder on Geopolitical Risk, Fed and Private Credit Bloomberg —
Fed Warns of Iran War Inflation
The Federal Reserve is closely monitoring the economic fallout from the Middle East, with officials noting that rising oil prices could act as a 'tax' on consumers.
Vice Chair Jefferson highlighted that while the labor market shows signs of stabilizing, the geopolitical shock complicates the path to the Fed's 2% inflation target.
Some economists worry that sustained energy costs could lead to a 'stagflationary' environment if the conflict persists.
The central bank is expected to remain cautious about further rate cuts until the full impact of the war is understood.