Former US Treasury Secretary Yellen: Iran Conflict Makes Fed More Inclined to Hold Rates Steady

Odaily News Former US Treasury Secretary Janet Yellen stated that the duration of the Iran conflict's impact on the oil market will determine the extent of its blow to US economic growth and the inflationary pressure it brings, which will complicate the Federal Reserve's work. Yellen, who previously served as Fed Chair, said during a video conference in Long Beach, California, on Monday: "I think the recent situation in Iran has made the Fed more hesitant, less willing to cut interest rates than before this happened." Yellen pointed out that the current inflation rate is already about one percentage point higher than the Fed's target. She stated that President Trump's tariff policies have contributed roughly half a percentage point to the current 3% inflation rate. Speaking at the S&P Global TPM26 shipping industry conference, she said: "Now we have the Iran shock, with oil prices surging significantly—we don't know what will happen in the coming days." Yellen added that if the Strait of Hormuz, a critical passage for a large volume of oil shipments in the region, remains closed for more than a few days, oil prices could stay elevated or rise further.