general
Powell says Fed can wait on rate hikes amid Iran conflict
Federal Reserve Chair Jerome Powell said the Fed can adopt a wait and see approach to higher oil and gasoline prices from the Iran war because monetary policy acts with long lags and energy shocks often fade quickly.
Mar 30th 2026 · United States
Insights
- Powell told a Harvard class that the Fed's current policy stance is well positioned to monitor oil price effects from the war in Iran.
- He said energy shocks tend to be sudden and short lived while monetary policy works with long and variable lags.
- Powell warned that raising rates now could end up tightening the economy after an oil price shock has passed.
- He described tariff driven inflation as smaller and more transitory than post pandemic inflationary pressures.
- In February US headline CPI was 2.4% year on year and core CPI was 2.5%, and the Fed has kept its policy rate at 3.5 to 3.75 percent since December.
Sources
- La Fed frena las rebajas de sus tipos por Trump www.expansion.com
- La morosidad marca un nuevo mínimo desde 2008 y da oxígeno a la banca ante una posible subida de tipos www.20minutos.es
- Powell no ve necesario por ahora subir los tipos de interés por la guerra en Irán www.expansion.com
- Trump Threatens Iran, Powell: Tension Between Fed Goals www.bloomberg.com
- Trump Threatens Iran, Powell: Tension Between Fed Goals www.bloomberg.com
- Powell (Fed) ve las expectativas de inflación "bien ancladas" pese a la guerra en Irán www.bolsamania.com
- Powell asegura que las turbulencias financieras por la guerra de Irán no están afectando a las expectativas de inflación elpais.com
- Powell Says Longer-Term Inflation Expectations Remain in Check www.bloomberg.com