by Natalia Mittelstadt
Federal Reserve Chairman Jerome Powell said Monday that the central bank will “wait and see” how the Iran war impacts the economy and inflation.
“We feel like our policy’s in a good place for us to wait and see how that turns out,” Powell said during a presentation to a Harvard University macroeconomics class, Reuters reported.
“Inflation expectations do appear to be well anchored beyond the short term,” he added. “But, nonetheless, it’s something that we will eventually maybe face the question of what to do here; we’re not really facing it yet because we don’t know what the economic effects will be, but we’ll certainly be mindful of that broader context when we make that decision.”
The Iran war has entered its fifth week, and U.S. gasoline prices have risen to around an average of $4 a gallon.
The Federal Reserve left its overnight benchmark interest rate steady in the 3.50%-3.75% range earlier this month, following a two-day policy meeting.
In January, Trump announced that Kevin Warsh would be nominated to succeed Powell as Federal Reserve chair.
Senate Committee on Banking, Housing, and Urban Affairs Chairman Tim Scott said, ““The Federal Reserve’s decisions touch every American household, from mortgage rates to retirement savings, and President Trump has been clear that bringing accountability and credibility to the Federal Reserve is a priority, and his nomination of Kevin Warsh reflects that focus.”
“As a former Federal Reserve Governor, Kevin has deep knowledge of markets and monetary policy that will be essential in this role. Federal Reserve independence remains paramount, and I am confident Kevin will work to instill confidence and credibility in the Fed’s monetary policy. As Chairman of the Senate Banking Committee, I look forward to leading a thoughtful, timely confirmation process that carefully examines his vision for focusing the Federal Reserve on its core mission,” the senator added.
Powell’s term ends on May 15th.
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Natalia Mittelstadt is a reporter for Just the News. Zachery Schmidt is the digital editor of The Star News Network and contributed to this story.
