Fed Vice Chair Jefferson warns of long-term hiring suppression as Middle East conflict fuels inflation

Corporate hiring may be suppressed over the long term if current levels of economic uncertainty persist. Federal Reserve Vice Chair Philip Jefferson stated that the conflict in the Middle East and rising energy prices have exacerbated this uncertainty. The Iran war has caused a spike in energy costs and threatened supplies of other key commodities, which puts upward pressure on overall U.S. inflation in the short term. Despite these pressures, Jefferson described the current level of interest rates as roughly within a range that neither stimulates nor restricts the economy, and New York Federal Reserve President John Williams stated that rates are 'exactly where it should be.' The result is a projected long-term suppression of job growth.