Federal Reserve's Kashkari and Harker Say Conflict Has Changed Rate Outlook; Maintaining a Dovish Stance Is No Longer Appropriate

The impact of the Iran conflict on the US economy has made future policy paths even more uncertain. I believe the Federal Open Market Committee (FOMC) should provide policy guidance indicating that the next interest rate adjustment could be a cut or a hike, depending on how the economy evolves. This could, to some extent, tighten current financial conditions and restrain a high inflation scenario, as such a scenario might require a stronger monetary policy response in the future. Read more