Fed Dodges Questions About Iran War’s Financial Toll
The Federal Reserve declined Wednesday to elaborate on whether policymakers are adequately accounting for the financial burden of the Iran war on American households after Chairman Kevin Warsh acknowledged rising oil prices during a press conference.
Warsh’s remarks followed the Federal Open Market Committee’s (FOMC) decision to hold its benchmark interest rate steady at 3.75% to 4.00%, despite persistent inflationary pressures. The decision raised questions about how long the central bank can look past war-related energy price increases before they threaten to push broader inflation and consumer expectations further above the Fed’s 2% target.
“I’m not going to be the guy who says that oil prices haven’t gone up,” Warsh said during Wednesday’s press conference.
Warsh also acknowledged that Americans are experiencing higher prices firsthand.
🚨Trump tells @reaganreese_ that he is not considering Americans’ financial situation when negotiating with Iran.
“The only thing that matters when I’m talking about Iran, they cannot have a nuclear weapon. I don’t think about Americans’ financial situation. I don’t think about anybody.
I think about one thing: we cannot let Iran have a nuclear weapon. That’s all.”
— Daily Caller (@DailyCaller) May 12, 2026
“When consumers interrogate reality, they look outside their windows too. They go to the gas station too. And they see the prices are up,” Warsh said. (Read more from “Fed Dodges Questions About Iran War’s Financial Toll” HERE)
