Federal Reserve Official: US-Israel-Iran Conflict May Lead to Sustained High Inflation in the US

2026-04-01 00:25:56

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On April 1, Jeff Schmid, president of the Federal Reserve Bank of Kansas City, stated that inflation in the United States could remain elevated, close to 3%, due to rising energy prices triggered by the US-Israel-Iran conflict. Schmid pointed out that this increase in oil prices occurs against a backdrop of inflation that is ‘already too high and has persisted for too long.’ He emphasized that the Federal Reserve should not simply assume that inflation caused by rising energy prices is temporary. He stressed that, given the current high levels of inflation, the ongoing impact of rising energy prices on overall inflation should not be overlooked.

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