US EditionShock After Shock: Fed Fears Iran War May Fuel Higher Inflation
The Federal Reserve kept interest rates at 3.5%–3.75% due to energy supply risks from Iran, projecting inflation to reach 2.7% by year-end, Fed Chair Jerome Powell said.
- On Wednesday, Federal Reserve Chair Jerome Powell warned that conflict in the Persian Gulf could worsen inflation, as the FOMC voted 11-1 to hold rates between 3.5% and 3.75%.
- An energy supply shock from Tehran's blockade has caused Brent crude futures to rise 3.8% to $107.38, with US gasoline hitting $3.84 per gallon, the highest since 2023.
- BLS data showed wholesale inflation rising in February as the Producer Price Index climbed 0.7% month-over-month and Fed median policymaker projections raised year-end PCE to 2.7%.
- Powell's comments sent stocks tumbling as he warned the war can trouble inflation expectations, and Comerica Bank Chief Economist Bill Adams said the Fed won't rescue the economy if gas and diesel prices rise.
- Fed projections still show 4.4% unemployment and 2.4% GDP growth in 2026, despite the energy shock, as the Fed pursues its two percent inflation target.
21 Articles
21 Articles
Shock After Shock: Fed Fears Iran War May Fuel Higher Inflation
“We had the tariff shock, we had the pandemic, and now we have an energy shock.” Those were the words of Federal Reserve Chair Jerome Powell on Wednesday, underscoring how his term hasn’t exactly been a boring one. With his tenure as chair due to expire in May, it doesn’t seem destined to end on a humdrum note, either. Powell, who plans to stay in the role until a successor is confirmed, bemoaned “frustrating” high services inflation and worried…
Madrid. The president of the Federal Reserve (Fed), Jerome Powell, said that the magnitude and duration of the conflict in Iran will be the indicators that reflect the impact that fluctuations in energy markets can have on the general inflation of the economy, although he did not dare to anticipate what these effects can be. “The question is how long it will take to have a total impact on the economy (energy market fluctuations). And this takes …
On Wednesday 18 March, the Fed maintained its management rates unchanged. President Jerome Powell, who was heavily criticized by Donald Trump, said he would remain in office until the end of his term of office on 15 May.
Fed's Powell says it's 'too soon to know' Iran war's impact on economy
Federal Reserve Chairman Jerome Powell said Wednesday it was "too soon" to assess the economic consequences of the ongoing war in Iran."The implications of events in the Middle East for the U.S. economy are uncertain. In the near term, higher energy prices will push up overall inflation, but it is too soon to know the scope and duration of the potential effects on the economy. We will continue to monitor the risks to both sides of our mandate," …
U.S. Fed Chair Says Interest Rate Cuts May Not Occur Due to Short-Term Inflation Rising from High Oil Prices U.S. Federal Reserve Chair Jerome Powell stated on the 18th (local time) that rising energy prices resulting from the war between the U.S., Israel, and Iran are expected to stimulate U.S. inflation in the short term. On this day, Chair Powell...
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