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Fed Vice Chair Bowman: Too Early to Judge Iran War Inflation Impact
Iran War Inflation Impact Too Early to Judge
Michelle Bowman, Vice Chair of the Federal Reserve (Fed), stated it is too early to determine the impact of the Iran war on inflation. She emphasized that policymakers should disregard temporary price shocks. Bowman noted the necessity for a clearer understanding of the Middle East conflict's economic implications and its duration when considering the future path of monetary policy.
Energy Price Hikes and Monetary Policy
Bowman explained that as long as the commitment to achieving the inflation target remains credible, it is appropriate to overlook temporary increases in inflation primarily driven by rising energy prices. She also anticipated that the "one-off" effects of tariffs imposed by former U.S. President Donald Trump would diminish. Data released on Thursday showed that the Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, rose by 3.8% in the 12 months ending in April, marking the highest level since 2023. This figure is nearly two full percentage points above the central bank's 2% target.
*Source: 經濟日報 (2026-06-01)*
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