NEW YORK: US Federal Reserve (Fed) vice-chair Philip Jefferson says the Iran war will stoke uncertainty and push US inflation higher in the near term, though the central bank’s policy setting remains appropriate.
Describing interest rates as broadly in a range that neither spurs nor restrains the economy, Jefferson said the current stance will support jobs and allow inflation to ease back to the 2% target as the effect of tariffs wanes.
“I remain cautious about my outlook,” Jefferson said in prepared remarks for a speech at the University of Detroit Mercy.
“Uncertainty about the economy is elevated, and the rise in energy prices and the conflict in the Middle East add to that uncertainty.
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