U.S. Fed’s Bowman says extended energy shock could drive shift in policy outlook - BNN Bloomberg
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Article Excerpt
U.S. Federal Reserve Vice Chair for Supervision Michelle Bowman said on Friday the Middle East war’s impact on the economy, while still being measured, could lead to persistent rises in inflation that might require tighter monetary policy.
“It still seems early to assess the size and persistence of the economic effects from the Iran conflict,” Bowman said in the text of a speech to be delivered at a conference in Iceland.
She said she was “optimistic” that once the war is over, supply disruptions will end and there will be a “temporary” impact on inflation and a “minimal” hit to overall econ…
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