Federal Reserve chief says policymakers are monitoring inflation and energy prices while maintaining current interest rate levels.
By yourNEWS Media Newsroom
Federal Reserve Chairman Jerome Powell said the central bank is taking a cautious approach as it evaluates the economic effects of the ongoing Iran conflict, emphasizing that policymakers are not yet prepared to adjust interest rates based on uncertain conditions.
Speaking during a presentation to a Harvard University macroeconomics class, Powell said the Federal Reserve is positioned to “wait and see” how the war influences inflation and broader economic trends, according to a Reuters report.
“We feel like our policy’s in a good place for us to wait and see how that turns out,” Powell said, adding that inflation expectations appear stable over the longer term. He noted, however, that future decisions could be influenced by developments tied to the conflict and its economic consequences.
Powell said the Federal Reserve remains aware that evolving conditions may eventually require policy adjustments, but indicated that current data does not yet justify immediate action.
The comments come as the conflict involving Iran enters its fifth week, with energy markets showing signs of strain. U.S. gasoline prices have risen to approximately $4 per gallon on average, reflecting increased pressure tied to global supply concerns.
Earlier this month, the Federal Reserve chose to leave its benchmark overnight interest rate unchanged in a range of 3.50 percent to 3.75 percent following a scheduled policy meeting.
Officials have signaled that maintaining flexibility is a priority as they assess potential ripple effects from geopolitical developments, including impacts on inflation, consumer costs, and overall economic stability.
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