Federal Reserve officials unanimously warn: Iran war has made inflation a "greater risk"

Golden Finance reported that on March 27, three Federal Reserve officials expressed increasing concerns about the impact of the Middle East war on the U.S. economic outlook, with one policymaker stating that the surge in oil prices has shifted the balance of risks, making inflation a greater concern than employment at present.
Federal Reserve Governor Lisa Cook stated during a question-and-answer session after a speech in New Haven, Connecticut, on Thursday, “I believe that due to the Iran war, the risks of inflation are now greater. In terms of the labor market, I think it is in a balanced state, but this balance is fragile.”
Cook did not disclose how she believes policymakers should respond; however, her two colleagues indicated during their remarks on Thursday that they are inclined to keep interest rates unchanged while assessing the war’s impact on inflation and growth.
Federal Reserve Governor Michael Barr stated at an event in Washington, “It is reasonable to take some time to assess the situation. Our current policy stance puts us in a favorable position to maintain stability while evaluating new data.”
Federal Reserve Governor Stephen Miran stated at an event in Miami that he still believes the underlying inflation rate will trend toward 2% over the next 12 months.
Miran also mentioned that the Federal Reserve could potentially reduce the size of its balance sheet by $1-2 trillion without causing turmoil in the financial markets. But he warned that many accompanying measures would be needed, and this process could take several years. “Once this process starts, I suggest a gradual pace of reduction to ensure the private sector can absorb all the securities we are shedding from our balance sheet. I am excited about the possibility of this happening, but if it does happen or once it happens, I expect progress to be slow.”