NY Fed’s Williams Warns of “Significant and Unpredictable” Risks to Economy From Iran War

New York Fed President John Williams warned that the Iran war is creating “significant and unpredictable” risks for the U.S. economy, mainly through higher oil prices and supply disruptions. He said these pressures are already pushing up inflation and adding uncertainty to the labor market and overall economic outlook. Despite the risks, Williams noted that current interest rate policy is well positioned, though the Fed remains cautious given how uncertain the conflict’s impact could be.