March 23 (Reuters) – San Francisco Federal Reserve Bank President Mary Daly on Monday said that unless the Iran conflict resolves quickly and the Fed can simply “look through” a temporary increase in oil prices, it is not clear what the Fed’s next move on interest rates will need to be.
“There is no single most-likely path,” Daly said in a post on LinkedIn, noting a protracted conflict could increase the risk of higher inflation but also a weaker labor market, putting the Fed’s two goals in tension. “With policy in a good place, we need to remain flexible, able to respond to rapidly evolving risks.”
(Reporting by Ann Saphir; Editing by Chris Reese)
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