Fed's Williams: Middle East Conflict Will Raise Overall Inflation, Minimal Impact on Core Inflation

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On April 7, John Williams, President of the Federal Reserve Bank of New York, stated that the impact of the Iran conflict will push up overall inflation. The Fed is closely monitoring core inflation, which has not changed significantly despite the Middle East conflict, with this year’s inflation rate expected to be around 2.75%. Tariffs remain an important part of the inflation narrative, but monetary policy is currently in a favorable ‘wait-and-see’ position.

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