Fed officials voice growing concern over fallout from Iran war

Bloomberg: Three Fed officials expressed growing anxiety over the US economic outlook due to the war in the Middle East, with one policymaker saying the spike in oil prices had shifted the balance of risks for now, leaving inflation as a bigger concern than employment.

Fed Governor Lisa Cook said the inflation risk is greater right now as a result of the Iran war, and that the labor market is in balance, but precariously so.

Fed officials, including Michael Barr and Philip Jefferson, said they preferred to keep rates on hold as they assessed how the war might affect inflation and growth, with Barr highlighting concerns that the impact of tariffs on inflation might continue beyond this year…