Fed's Barkin Cites Iran War as Raising Economic Uncertainty

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Richmond Federal Reserve President Thomas Barkin stated that the ongoing conflict in Iran has complicated the economic outlook, posing risks to inflation and consumer demand. Barkin said that in light of the extended period of elevated uncertainty, the Fed's decision to hold interest rates steady in March was the appropriate course of action.

Why it matters

The Fed's monetary policy decisions have significant implications for the broader economy, and Barkin's comments suggest that geopolitical tensions, such as the war in Iran, are creating challenges in assessing the appropriate path forward for interest rates and other policy tools.

The details

Speaking at an economics meeting in Johnson City, Tennessee, Barkin noted that the war in Iran has introduced new complexities into the economic picture, with potential impacts on inflation and consumer spending. Given the prolonged stretch of heightened uncertainty, Barkin believes the Fed's decision to maintain interest rates at their current levels in March was prudent.

• Barkin made these comments on March 27, 2026.

What they’re saying

What’s next

The Federal Reserve's next policy meeting is scheduled for April, where officials will further assess the economic landscape and determine if any adjustments to interest rates are warranted.