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Former U.S. Treasury Secretary Yellen: Conflict in Iran has made Federal Reserve more inclined to hold off
Svmuu News: Former U.S. Treasury Secretary Janet Yellen stated that the duration of the conflict in Iran’s impact on the oil market will determine the extent of the blow it deals to U.S. economic growth and the level of inflationary pressure it generates, which will complicate the work of Federal Reserve. Yellen, who previously served as chair of the Federal Reserve, said during a video conference in Long Beach, California, on Monday: ““I think the recent situation in Iran has made Federal Reserve more hesitant and less willing to cut rates than it was before this happened.” Yellen noted that the current inflation rate is already about one percentage point higher than Federal Reserve’s target. She said President Donald Trump’s tariff policies have contributed about half a percentage point to the current 3% inflation rate.Speaking at the S&P Global TPM26 shipping conference, she said, “We are now facing the Iran shock, with oil prices rising sharply—we don’t know what will happen in the coming days.” Yellen said that if the Strait of Hormuz, through which a significant portion of the region’s oil shipments must pass, remains closed for more than a few days, oil prices could remain high or rise further.
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