Federal Reserve's Gulsbee: Iran war and tariffs constitute dual risks

Chicago Federal Reserve President Charles Evans said in an interview that the central bank faces "some slight dangers" as inflation remains above the 2% target level. Evans said in the interview on Tuesday, "If oil prices remain high, we may see a significant increase in consumer inflation expectations. And before the inflation brought by tariffs fades away, adding this factor poses a double danger. Any time inflation significantly exceeds the target level for a long period of time, there is a danger." He also said, "Stacking two inflation shocks, even if they are temporary, poses a danger of being misunderstood by consumers or businesses as persistent."