Powell: Iran war to increase inflation in the near term

• Inflation has eased significantly from mid-2022 highs but remains somewhat elevated relative to the 2% long-run goal.
• Near-term inflation expectations have risen in recent weeks, likely reflecting substantial rises in oil prices due to Middle East supply disruptions.
• Most measures of longer-term inflation expectations remain consistent with the 2% inflation goal.

Federal Reserve Chair Jerome Powell discussed current inflation trends, noting an easing from mid-2022 highs but remaining elevated. He highlighted that near-term inflation expectations have risen due to increased oil prices from Middle East supply disruptions, while longer-term expectations remain anchored at the 2% target.