Federal Reserve's Goolsbee: Stagflation caused by Iran conflict puts the Fed in a dilemma

Golden Finance reported that on April 8, Federal Reserve Governor Goolsbee said he is concerned that an Iran war would not only weigh on economic growth, but also push up the inflation rate, putting the Federal Reserve in a tricky situation, because there is no clear “operating guideline” to tell it how to respond. Goolsbee said, “What I’m most concerned about right now is that we have to deal with the upcoming oil crisis, which will cause prices to rise in the form of stagflation. Tariffs have led to a surge in prices, but prices were supposed to gradually come down, and now the shock has arrived before the impact has even finished fading.”

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