PANews reported on April 8th that, according to Jinshi News, Federal Reserve Vice Chairman Philip Jefferson stated that the war with Iran would introduce uncertainty and push up US inflation in the short term, but the central bank's current monetary policy stance remains appropriate. Jefferson described the current interest rate level as roughly within a range that neither stimulates nor inhibits the economy. He stated that under the current stance, employment will be supported, and as the effects of tariffs fade, inflation is expected to gradually return to the 2% target level.

In a speech at Mercy University in Detroit on Tuesday, Jefferson said, “I remain cautious about the economic outlook. Economic uncertainty is already high, and rising energy prices and the conflict in the Middle East have further exacerbated this uncertainty. However, I still believe that our current policy stance is appropriate and allows us to assess the evolution of the economy.” While Jefferson indicated he expects a broader disinflationary trend to continue, he remained cautious about how the war with Iran would affect inflation and consumer demand, saying the conflict has complicated his assessment of price movements. Jefferson said, “However, the recent rise in energy prices will put upward pressure on overall inflation, at least in the near term. Continued trade policy uncertainty and geopolitical tensions pose upside risks to my inflation forecast.”