The President of the Federal Reserve Bank of Cleveland noted increased uncertainty about economic prospects and the course of monetary policy, especially underscoring the critical importance of how long the war in Iran lasts. He said that rising energy prices could weigh on consumer spending and economic growth, adding that geopolitical events will play a significant role in the Fed’s assessments.

On the other hand, the April consumer expectations survey published by the New York Fed showed that inflation expectations in the U.S. remain elevated. According to the survey, annual inflation expectations increased from 3.4% to 3.6%, while long-term expectations remained stable at around 3%.