The president of the New York Federal Reserve warned that the oil price surge triggered by the war with Iran could have repercussions on the overall economy.

New York Federal Reserve President John Williams stated on FOX Business that the impact of the war with Iran on energy prices could spread to multiple sectors of the economy. Prices for various goods and services, including airfares, will rise due to increased fuel costs, a transmission process that typically takes months or even a year to fully materialize. Currently, the national average price of regular gasoline in the United States has exceeded $4 per gallon, an increase of over $1 since the outbreak of the war on February 28. Williams pointed out that rising energy prices both push up inflation and erode household disposable income, putting double pressure on economic demand. Williams stated that the Fed's current monetary policy is well-positioned to balance related risks, but the war with Iran is an unforeseen and sudden geopolitical shock, limiting the effectiveness of monetary policy in addressing oil price fluctuations. He emphasized the need for forward-looking decision-making, as the full impact of monetary policy on the economy takes at least a year to materialize.