The impact of the Iran war could have an impact on monetary policy, but it was too early to know whether it could also affect inflation, Federal Reserve (Fed) Bank of Minneapolis President Neel Kashkari told a Bloomberg Investing conference on Tuesday.
key quote
It is too early to know what impact the Iran war will have on inflation.
The impact of the Iran war may affect monetary policy.
Given the recent inflation path, elevated headline inflation is being monitored.
Thought monetary policy was in a good place.
The Fed will have to see how big and how long the blow to Iran will be.
Uncertainty has increased regarding the tariff outlook.
It seems unlikely that the latest round of tariffs will have a fresh impact on inflation.
There does not appear to be much scope for a significant increase in tariff levels.
More data is needed to know what the Fed should do with rates this year.
The labor market is in good condition.
The Fed aims to achieve a 2% inflation target.
The strength of the economy suggests a higher neutral rate.
Before the Iran attack, the Fed job and inflation mandates felt more stable.
There is not much underlying demand for labour.
Inflation is still high but trending downwards.
AI investment is likely driving up the neutral rate in the near term.
Limited lessons from the 1990s about the productivity boom.
Not much is being heard from business that inflation is going to increase further.
With expectations that inflationary pressures will ease this year, the most interest is in the trajectory.
Housing inflationary pressures are expected to ease.
Inflation was moving in the right direction until the Iran War.
There will be more uncertainty about the outlook in the March Fed forecasts.
US dollar price today
The table below shows the percentage change in the US Dollar (USD) against the major currencies listed today. The US dollar was the strongest against the New Zealand dollar.
| USD | EUR | gbp | JPY | scurvy | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.87% | 0.63% | 0.27% | 0.00% | 0.93% | 1.07% | 0.50% | |
| EUR | -0.87% | -0.24% | -0.60% | -0.86% | 0.07% | 0.20% | -0.36% | |
| gbp | -0.63% | 0.24% | -0.36% | -0.62% | 0.30% | 0.44% | -0.12% | |
| JPY | -0.27% | 0.60% | 0.36% | -0.27% | 0.66% | 0.78% | 0.23% | |
| scurvy | -0.01% | 0.86% | 0.62% | 0.27% | 0.93% | 1.06% | 0.50% | |
| AUD | -0.93% | -0.07% | -0.30% | -0.66% | -0.93% | 0.13% | -0.42% | |
| NZD | -1.07% | -0.20% | -0.44% | -0.78% | -1.06% | -0.13% | -0.56% | |
| CHF | -0.50% | 0.36% | 0.12% | -0.23% | -0.50% | 0.42% | 0.56% |
The heat map shows the percentage change of major currencies against each other. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you select US Dollar from the left column and move to Japanese Yen along the horizontal line, the percentage change displayed in the box will represent USD (base)/JPY (quote).
