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Dallas Fed President: Iran War Fuels Inflation, Raises Labor Market Risks
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Dallas Fed President Lorie Logan said on Thursday that US military conflict involving Iran is increasing the risks of both higher inflation and a weakening labor market. She said the conflict has heightened uncertainty over the economy and outlook, making the Federal Reserves job more complicated. If the war ends quickly and the Strait of Hormuz reopens, the impact on the US economy and labor market may be moderate. However, if the conflict persists and it takes a longer time to restore shipping through the waterway, the adverse effects could be more significant. In her remarks, she noted that the Federal Reserve could reduce banks demand for reserves by adjusting regulatory measures, thereby shrinking the size of its balance sheet. She emphasized that the current system of maintaining so-called ample reserves is preferable to the framework used before the global financial crisis, but authorities should consider adjustments to reduce the level of reserves without undermining the safety of the banking system. (me/s) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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