Fed's Goolsbee: Stagflation shock from Iran conflict puts the Fed in a tough position

Golden Ten Data reported on April 8 that Federal Reserve's Goolsbee expressed concern that the war involving Iran will not only slow down economic growth but also push up the inflation rate. This puts the Federal Reserve in a tricky position, as there is no clear "operating manual" to guide how it should respond. Goolsbee stated: "What worries me most right now is that we must deal with the impending oil crisis, which will cause prices to rise in the form of stagflation. Tariffs previously caused prices to soar, but those prices should have gradually come down. However, now impacts are hitting before the previous effects have even subsided."