The President of the New York Federal Reserve warns that the rise in oil prices triggered by the Iran war could impact the overall economy

ME News Report, April 3 (UTC+8), New York Federal Reserve Chair John Williams stated on FOX Business that the impact of the Iran war on energy prices could spill over into multiple sectors of the economy, including the prices of various goods and services such as airline tickets, which will rise due to increased fuel costs. This transmission process typically takes months or even a year to fully manifest. Currently, the average nationwide price of regular gasoline in the United States has exceeded $4 per gallon, up more than $1 since the outbreak of the war. Williams pointed out that rising energy prices not only push up inflation but also weaken household disposable income, creating a dual pressure on economic demand. Williams said that the Federal Reserve’s current monetary policy is well-positioned to balance related risks, but the Iran war is an unpredictable geopolitical shock, and monetary policy has limitations in responding to oil price fluctuations. He emphasized that decision-making needs to be forward-looking because the full impact of monetary policy on the economy takes at least a year. (Source: ChainCatcher)