Fed was ‘appropriately cautious' at two-day policy meeting, says Gary Stern

• Fed Chair Powell acknowledged uncertainty from Middle East events and higher energy prices on inflation, noting it's 'too soon to know the scope and duration' of effects.
• Gary Stern supports the Fed's cautious 'wait and see' approach, citing high uncertainty from geopolitical events, labor market dynamics, private credit, and persistent inflation.
• Stern notes the Fed faces a 'tough dilemma' balancing high employment and a 2% inflation target, with energy prices potentially pushing headline inflation higher.

Former Minneapolis Fed President Gary Stern discusses the Fed's 'appropriately cautious' stance following their recent policy meeting. He highlights the significant uncertainty surrounding the Middle East conflict's impact on inflation and energy prices, alongside concerns about labor market stagnation and private credit, making the Fed's dual mandate challenging.