Summary
- Former U.S. Treasury Secretary Janet Yellen said fallout from the Iran conflict could delay the timing of Fed rate cuts.
- Yellen warned that if supply disruptions in the Strait of Hormuz persist, rising international oil prices could stoke inflation.
- Yellen added that despite geopolitical risks, the U.S. economy’s underlying fundamentals remain relatively solid even as concerns persist about a slowdown in economic growth.
Forecast Trend Report by Period
Former U.S. Treasury Secretary Janet Yellen said spillovers from the Iran conflict could push back the timing of Federal Reserve (Fed) interest-rate cuts.
According to Walter Bloomberg, an overseas breaking economic news channel, on the 2nd (local time), Yellen noted that tensions with Iran could both slow U.S. economic growth and stoke inflation.
She warned in particular that if supply disruptions in the Strait of Hormuz persist, rising international oil prices could lift inflation again.
“The Fed is focused on maintaining confidence in bringing inflation back to its 2% target,” she said, adding that in this environment the Fed is likely to maintain a more cautious “wait-and-see” stance.
Yellen added, however, that despite geopolitical risks, the underlying fundamentals of the U.S. economy remain relatively solid.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
