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Fed’s Williams Says Iran Impact ‘Reasonably Muted’ So Far

Maria Eloisa Capurro
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⚡ Quantum Brief
New York Fed President John Williams stated the economic impact of US-Israeli strikes on Iran remains "reasonably muted" as of March 2026, emphasizing uncertainty over lasting effects. Williams tied potential fallout to oil price volatility, warning that sustained disruptions could pressure inflation, complicating Federal Reserve policy decisions. Speaking in Washington, he stressed monitoring asset price persistence—particularly energy markets—as the key factor in assessing long-term economic risks. The Fed official declined to specify timelines but signaled rate-cut plans hinge on inflation trends, now clouded by geopolitical tensions. His remarks underscore how energy-driven inflation could delay monetary easing, shifting focus from domestic data to global supply-chain stability.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000The Fed:Federal Reserve Bank of New York President John Williams said the economic fallout from US-Israeli attacks on Iran hinges on how long they affect asset prices, especially the price of oil.“We’ll have to see how persistent this is,” Williams told reporters on Tuesday in Washington in response to a question about the potential impact on US inflation.

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