Federal Reserve Chairman Jerome Powell acknowledged Wednesday that the central bank’s newest economic projections carry extraordinary uncertainty because of the ongoing conflict involving Iran.
Speaking about the Federal Reserve’s Summary of Economic Projections that accompanied Wednesday’s policy meeting results, Powell revealed the difficulty officials faced in making predictions. “This is one of those SEPs where a number of people mentioned, if we were ever going to skip an SEP, this would be a good one, because we just don’t know” what developments may occur due to the war’s unpredictable nature, Powell stated.
The Fed chair’s comments highlight how global conflicts can complicate the central bank’s ability to chart the course of the U.S. economy and monetary policy decisions.
