Former U.S. Treasury Secretary Janet Yellen cautioned that the ongoing Iran conflict could elevate oil prices, increasing inflationary pressures and challenging Federal Reserve policies in 2026.
Former U.S. Treasury Secretary Janet Yellen warned that escalating tensions in Iran could lead to higher oil prices, exacerbating inflationary pressures and complicating the Federal Reserve's ability to cut interest rates in 2026. Inflation is currently 1% above the Fed's 2% target, partly due to tariffs, adding complexity to monetary policy decisions. Yellen's comments highlight how geopolitical risks intersect with global economic management.