Yellen says Iran situation will make Fed hesitant on rate cuts

Janet Yellen, former U.S. Federal Reserve Chair and Treasury Secretary, predicted that the Fed will delay interest rate cuts due to rising inflationary pressures from the situation in Iran. According to Edaily, Yellen said the conflict has made the Fed more hesitant to lower rates. She warned of the risk that market participants could begin to think the Fed is not serious about bringing inflation down to its 2% target, despite having lowered it to 3%. Yellen cautioned that if this sentiment solidifies, inflation could become permanently higher, worsening the central bank's policy trade-offs.