Fed's Daly Says Too Early to Tell If War Will Create Long-Term Shock

Fed San Francisco President Mary Daly said it is too early to determine whether the war in Iran will create a long-term economic shock. The remarks highlight policy uncertainty around the growth and inflation outlook, but do not signal an immediate shift in the Fed’s stance. Market impact is limited unless the conflict begins to materially affect energy prices, inflation, or financial conditions.

Analysis

Fed San Francisco President Mary Daly said it is too early to determine whether the war in Iran will create a long-term economic shock. The remarks highlight policy uncertainty around the growth and inflation outlook, but do not signal an immediate shift in the Fed’s stance. Market impact is limited unless the conflict begins to materially affect energy prices, inflation, or financial conditions.