Federal Reserve's Goolsbee Says Impact of War with Iran More Like an Inflation Shock

Chicago Fed President Austan Goolsbee said on Wednesday that the war with Iran increasingly looks like an inflation shock to the economy. Although the impact on employment and economic growth is not yet apparent, concerns over supply chain disruptions and sustained price increases are growing. "This is not yet a 'stagflation' shock," the kind that hits the job market while pushing up inflation, forcing the Fed to determine which of its policy objectives faces greater risk, Goolsbee said after speaking at the Milken Institute conference in Los Angeles. "This is merely an inflation shock. And the longer this situation lasts, the more uneasy I become."