Yellen Says Iran War Will Increase Inflationary Pressure
Janet Yellen told a Hong Kong summit that the Iran war is creating supply shocks. She warned these disruptions will likely drive further global inflation.
Former United States Treasury Secretary Janet Yellen has cautioned that the ongoing conflict involving Iran[country:\{ value:\"IR\" \}] is generating significant supply shocks within the global economy. Speaking at an event in Hong Kong, Yellen noted that these disruptions are poised to intensify existing inflationary pressures.
During her address at the summit hosted by HSBC HOLDINGS PLC, Yellen emphasized that the Middle East conflict has exacerbated a period of prolonged economic uncertainty. She pointed out that the impact of these geopolitical tensions is already becoming visible in global economic data.
\"It puts upward pressure on inflation and we've already seen that in recent inflation reports, but we're likely to see more.\"
\"This is really a broad supply shock.\"
The former Treasury Secretary's remarks highlight concerns that the volatility in the region could lead to sustained price increases, complicating the efforts of central banks to manage inflation. The supply shock mentioned refers to the potential disruption of trade routes and energy supplies, which are critical components of the global cost structure.
