Federal Reserve policymakers sparred during the central bank’s March meeting over how to respond if the Iran war triggers a prolonged period of high energy prices, according to a summary released on Wednesday.
Minutes of the March 17-18 meeting showed “most” members of the Federal Open Market Committee fretted that a lengthy war could warrant cutting rates to support the jobs market, while “many” suggested it might require raising them to counter higher prices.
The debate among rate setters at the world’s leading central bank underlines the potential for widespread economic fallout if the US and Israel’s war against Iran drags on.
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