Fed Contends With Iran War Uncertainty

Former Fed Vice Chair for Supervision Randal Quarles warned that uncertainty from war could hit the economy sooner than expected and that volatile conditions are likely to reduce business investment. He flagged falling business investment as a downside risk to growth and corporate capex. The remarks are primarily sentiment-driven and raise downside risk for investment-sensitive sectors rather than signaling an immediate policy change.

Analysis

Former Fed Vice Chair for Supervision Randal Quarles warned that uncertainty from war could hit the economy sooner than expected and that volatile conditions are likely to reduce business investment. He flagged falling business investment as a downside risk to growth and corporate capex. The remarks are primarily sentiment-driven and raise downside risk for investment-sensitive sectors rather than signaling an immediate policy change.