Original Source
Powell Says Fed Can 'Wait and See' on Iran War's Inflation Impact
Fed Adopts Cautious Stance on Inflation
Federal Reserve Chair Jerome Powell indicated that the Fed can "wait and see how that turns out" before acting on inflation stemming from the Iran war. This suggests a cautious approach, acknowledging the uncertainty of the war's impact on prices and the importance of monitoring the situation before making immediate policy changes. The Federal Reserve continues to closely observe inflation trends to maintain stability in the U.S. economy.
Monitoring Economic Fallout of Iran War
Powell's remarks reflect concerns about the potential economic repercussions of the Iran war, particularly its effect on inflation. Various factors, such as potential commodity price hikes due to the conflict, could exert upward pressure on prices. The Fed is expected to comprehensively analyze relevant data to determine its monetary policy direction. Markets interpret Powell's comments as an indication that the Fed will likely maintain a cautious stance rather than implementing drastic policy shifts in the near future.
*Source: Channel News Asia (2026-03-30)*
