Fed’s Miran Sees Inflation Close to Target a Year From Now

Federal Reserve Governor Stephen Miran said the energy shock triggered by the Iran war has yet to impact longer-run inflation expectations, and he expects price pressures to return to the central bank’s target in a year’s time.

“There’s thus far no evidence that inflation expectations are higher,” Miran said in remarks at an event in Washington Tuesday. “With the labor market on the trajectory of cooling gradually, which it’s been on for about three years now, it’s very unlikely that we get a sort of wage-price spiral. So thus far, the traditional wisdom of the central bank of not responding to the model shock seems to me to be reasonable.”