--- title: "Former Federal Reserve Chair and former U.S. Treasury Secretary Janet Yellen: The situation in Iran makes the Federal Reserve less willing to cut interest rates" description: "Yellen expects that Trump's tariff policy has contributed about 0.5 percentage points to the current inflation of approximately 3%. Despite significant risks, including the conflict in Iran, Yellen is" type: "news" locale: "en" url: "https://longbridge.com/en/news/277528983.md" published_at: "2026-03-02T22:44:24.000Z" --- # Former Federal Reserve Chair and former U.S. Treasury Secretary Janet Yellen: The situation in Iran makes the Federal Reserve less willing to cut interest rates > Yellen expects that Trump's tariff policy has contributed about 0.5 percentage points to the current inflation of approximately 3%. Despite significant risks, including the conflict in Iran, Yellen is quite optimistic about the economic outlook. She also pointed out that many of President Trump's disruptive policy measures on the global economy are reflected in investors demanding a higher risk premium on U.S. Treasury bonds; concerns about U.S. economic policy have also put downward pressure on the dollar, as the market believes that higher risks need to be compensated Former Federal Reserve Chair and former U.S. Treasury Secretary Janet Yellen recently stated that the impact of the Iran conflict on the oil market will determine how long the U.S. economic growth will be affected, while inflationary pressures will also increase, complicating the Federal Reserve's decision-making: > **I believe the recent situation in Iran has made the Federal Reserve more hesitant to act, more unwilling to cut interest rates than before the events occurred.** > > Currently, the inflation rate is still about 1 percentage point higher than the Federal Reserve's 2% target. **President Trump's tariff policy has contributed about 0.5 percentage points to the current inflation level of around 3%.** > > Now with the Iran shock, oil prices have already risen significantly—what will happen in the coming days is still unclear. If the Strait of Hormuz is closed for more than a few days—this strait handles a large amount of oil transport in the region, oil prices may remain high or even rise further. Before the Iran shock occurred, the Federal Reserve believed it had addressed the weakness in the U.S. labor market and was waiting for inflation to decline. Given that the Federal Reserve has not yet brought the inflation rate back to 2%, Yellen stated: “They must be concerned that market participants start to think: yes, they have brought inflation down to 3%, but they are not really serious about bringing it down to 2%. If this psychological expectation forms, the market will worry about inflation remaining at a higher level for a long time, leading to worse policy trade-offs, which is also why the Federal Reserve may be more hesitant to act.” **Despite significant risks, including the Iran conflict, Yellen stated: “Overall, the U.S. economy is currently quite healthy, and I am fairly optimistic about the economic outlook.”** Yellen also criticized some of the Trump administration's actions against the Federal Reserve. She stated that the president's attempt to remove Governor Lisa Cook is almost unimaginable. The Supreme Court has not yet commented on this, but Trump is likely to lose. Yellen mentioned that the president “has taken unprecedented steps to effectively weaponize the Department of Justice against the Federal Reserve Chair.” This refers to the investigation by the U.S. Department of Justice into Federal Reserve Chair Jerome Powell's comments last year regarding the cost overruns of the Fed building renovation. Yellen stated that if criminal charges are brought, it would pose a significant threat to the independence of the Federal Reserve. “I believe everyone recognizes that this would severely impact economic policy and could significantly elevate inflation.” Yellen also pointed out that many of President Trump's disruptive policies affecting the global economy are reflected in investors demanding a higher risk premium on U.S. Treasury bonds. She stated that increasing concerns about U.S. economic policy are also putting downward pressure on the dollar, as the market believes that higher risks need to be compensated ### Related Stocks - [.DJI.US - Dow Jones Industrial Average](https://longbridge.com/en/quote/.DJI.US.md) - [FNCL.US - Fidelity MSCI Financials Index](https://longbridge.com/en/quote/FNCL.US.md) - [USDU.US - Wtree Bbg Usd Bull](https://longbridge.com/en/quote/USDU.US.md) - [UDN.US - Invesco Db Dlr Idx Bearish ETF](https://longbridge.com/en/quote/UDN.US.md) - [QQEW.US - First Trust NASDAQ-100 Equal Weighted](https://longbridge.com/en/quote/QQEW.US.md) - [.SPX.US - S&P 500](https://longbridge.com/en/quote/.SPX.US.md) - [VFH.US - VG Financial](https://longbridge.com/en/quote/VFH.US.md) - [UUP.US - Invesco DB US Dollar Index Bullish Fund](https://longbridge.com/en/quote/UUP.US.md) - [ONEQ.US - Fidelity Nasdaq Composite Index ETF](https://longbridge.com/en/quote/ONEQ.US.md) - [QQQM.US - Invesco Nasdaq 100 ETF](https://longbridge.com/en/quote/QQQM.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 退税潮之下，特朗普政府：申請推遲約 4 個月啓動退款程序 | 美國最高法院裁定特朗普關税政策違法後，特朗普政府承認退款程序將啓動，但申請推遲約四個月。已有超過 100 家公司提起訴訟，要求退還關税款項，相關訴訟總數超過 2000 起。美國司法部請求法院暫緩退款程序，強調程序複雜性需審慎推進。民主黨則提 | [Link](https://longbridge.com/en/news/277416137.md) | | 中東戰事衝擊 道指跌 600 點 市場憂油設施持續受襲 大摩仍樂觀：無阻睇好美股 | 中東局勢緊張導致美股期貨下跌，道指一度跌 600 點，恐慌指數升至三個月新高。美元和 10 年期債息上升，科技股普遍下滑，能源和軍工股表現強勁。摩根大通認為市場需重新評估地緣政治風險，但摩根史坦利依然看好美股，認為除非油價急劇上漲，否則未來 | [Link](https://longbridge.com/en/news/277485976.md) | | 美國製造業在二月份穩步增長，而投入價格則大幅上漲 | 美國製造業活動在二月份穩步增長，PMI 為 52.4，表明經濟擴張。然而，投入價格飆升至近 3.5 年來的最高水平，引發了在美國對伊朗進行打擊後，持續關税和地緣政治緊張局勢下的通脹擔憂。儘管科技行業有所提振，自 2025 年 1 月以來，製 | [Link](https://longbridge.com/en/news/277487045.md) | | 3 月 2 日美國重要經濟數據每日匯總 | 2023 年 3 月 2 日美國經濟數據每日匯總 | [Link](https://longbridge.com/en/news/277514978.md) | | 如何應對新的 15% 全球關税：這對美國消費者的影響是什麼 | 將於 2026 年 2 月 24 日實施一項新的 15% 全球關税，此政策由總統唐納德·特朗普提出。該政策將影響多種進口商品，引發美國消費者和小企業的擔憂。對於家庭，特別是西班牙裔家庭來説，瞭解哪些產品將受到影響以有效管理預算至關重要 | [Link](https://longbridge.com/en/news/277086558.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.