Key insights
- Powell's comments highlight significant uncertainty surrounding Fed forecasts due to the Iran war, suggesting potential policy unpredictability. This could lead to increased market volatility as investors grapple with the lack of clear guidance from the Fed, potentially weighing on US equities.
By Michael S. Derby
March 18 (Reuters) - Federal Reserve Chair Jerome Powell said Wednesday the latest round of Fed forecasts are a bit of a shot in the dark given uncertainty created by the Iran war.
Commenting on the Fed’s Summary of Economic Projections released with the Fed meeting outcome, Powell said: “This is one of those SEPs where a number of people mentioned, if we were ever going to skip an SEP, this would be a good one, because we just don’t know” what’s going to happen given uncertainties around the war.