Kashkari warns longer Iran war means greater inflation impact, keeps rate cut off the table
Federal Reserve official Neel Kashkari warned that the longer the Iran war continues, the greater its impact on US inflation and the more it constrains the Fed's policy flexibility, according to a Middle East Eye live bl.
At a glance
- Kashkari said a prolonged Iran war would have a greater impact on US inflation and declined to signal a rate cut, per Middle East Eye.
- The report says Strait of Hormuz disruption affects roughly one-fifth of global oil and gas flows.
- Kashkari dissented from the majority at the latest FOMC meeting, according to the report.
VERDICT — CONFIRMED
Federal Reserve official Neel Kashkari warned that the longer the Iran war continues, the greater its impact on US inflation and the more it constrains the Fed's policy flexibility, according to a Middle East Eye live blog update dated May 3. "I don't feel comfortable signaling that a rate cut is in the cards.
You know, we might be in worse scenarios, we might have to go the other direction," he said, per the report. The outlet noted the war began February 28, 2026 after US and Israeli strikes on Iran, and that disruption in the Strait of Hormuz affects roughly one-fifth of global oil and gas flows.
Kashkari dissented from the majority at the latest FOMC meeting, the report said.
Key facts on file
- Kashkari said a prolonged Iran war would have a greater impact on US inflation and declined to signal a rate cut, per Middle East Eye.
- The report says Strait of Hormuz disruption affects roughly one-fifth of global oil and gas flows.
- Kashkari dissented from the majority at the latest FOMC meeting, according to the report.
