The US is bracing for potential inflation increases due to the ongoing Iran war. The Federal Reserve’s President, John Williams, said the conflict has added uncertainty and already raised prices. However, he believes this effect will reverse once the conflict ends. For now, Williams thinks the Fed can wait and see if these pressures last. But he warns that as long as the conflict persists, it could cause economic instability, fueling inflation while slowing down growth.
Source: https://www.wsj.com/articles/feds-williams-middle-east-developments-have-added-significant-economic-uncertainty-b0751ad2