Federal Reserve’s Goolsbee says the impact of the Iran war is more like an inflation shock

Golden Ten Data reported on May 7 that Chicago Fed President Goolsbee said on Wednesday that the Iran-Israel conflict increasingly appears to be an inflationary shock to the economy. Although the current impact on employment and economic growth is not yet apparent, concerns about supply chain disruptions and persistently rising prices are intensifying. "This is not yet a 'stagflationary' shock,"—that is, the kind of shock that hits the job market while pushing up inflation and forcing the Federal Reserve to decide which policy objective faces greater risk—Goolsbee said after attending the Milken Institute conference in Los Angeles. "This is simply an inflationary shock. And the longer this goes on, the more uneasy I become."