Fed’s Logan Says Iran War Raises Inflation, Labor Market Risks

Federal Reserve Bank of Dallas President Lorie Logan said the US war in Iran is raising risks of both higher inflation and weakness in the labor market.

The conflict “has increased our level of uncertainty about the economy and the outlook,” Logan said Thursday in a moderated conversation in Dallas. “It’s made our jobs more complex because it’s increasing risks on both sides of our mandate.”

If the war resolves quickly and the Strait of Hormuz is reopened, the impacts on the economy and the labor market could be moderate, Logan said. But “if the conflict continues and it takes ...