The outlook was getting murkier even before the Iran War -- we'll discuss that in a minute. A prolonged rise in energy prices would spread to prices generally. A prolonged rise in energy prices would unanchor them. (https://www.bls.gov/…) The Iran war could easily weaken the labor market further. (https://www.federalreserve.gov/…) At a later discussion with Harvard students, he worried that the energy-price shock from the Iran War could unanchor inflation expectations.

Source: Wall Street Journal April 01, 2026 19:16 UTC