But the oil shock from the Iran war, she told Reuters in an interview late Thursday, extends the timeline on getting inflation back to the Fed's 2% goal, and may leave the Fed in a holding pattern on interest rates. "We had work to do before we had the oil price shock; with the oil price shock, the work just takes longer," Daly said, noting that though the drop in oil prices after the US and Iran announced a ceasefire deal earlier this week brings some relief, "no one's really sure how long that will last." Many Fed policymakers, Daly included, had felt that tariff-related inflation would probably ease later this year, allowing the central bank to resume cutting rates. Then came the Iran war, driving oil prices up sharply and lifting gasoline prices above US$4 a gallon. At the moment, Daly said, risks to the Fed's two goals of full employment and price stability are balanced.

Source: The Edge Markets April 10, 2026 12:57 UTC