New York Fed President warns that oil price increases triggered by Iran war could impact the overall economy

MeNews · 2026-04-03T01:03:43+00:00

New York Federal Reserve President John Williams stated that the rise in energy prices caused by the Iran war will impact multiple sectors of the economy, with commodity and service prices increasing due to higher fuel costs. He pointed out that although the Federal Reserve's monetary policy is effective, there are still limitations in responding to sudden geopolitical shocks such as oil price fluctuations.

MeNews

2026-04-03 01:03:43

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ME News, April 3 (UTC+8). John Williams, President of the Federal Reserve Bank of New York, said on the FOX Business program that the impact of the Iran war on energy prices may spread to multiple areas of the economy. Prices of various goods and services, including airline tickets, may rise due to higher fuel costs. This transmission process typically takes several months or even a year to become fully apparent. Currently, the nationwide average price of regular gasoline in the United States has exceeded $4 per gallon, up more than $1 since the outbreak of the war. Williams noted that higher energy prices both raise inflation and weaken household disposable income, creating dual pressure on economic demand. Williams said that the Federal Reserve’s current monetary policy is well positioned to balance the related risks, but the Iran war is an unforeseen sudden geopolitical shock, and monetary policy has limitations in responding to oil price changes. He emphasized that decision-making needs to be forward-looking because the monetary policy’s full impact on the economy takes at least a year. (Source: ChainCatcher)

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