Federal Reserve's Goolsby said the impact of the war with Iran was more like an inflationary shock.

Chicago Federal Reserve President John Goolsby said Wednesday that the war in Iraq increasingly appears to be an inflationary shock to the economy, although its impact on employment and economic growth is not yet apparent, but concerns about supply chain disruptions and persistently rising prices are intensifying. “This is not a stagflation shock,” Goolsby said after attending a Milken Institute conference in Los Angeles—the kind that hits the job market while pushing up inflation, forcing the Fed to decide which of its policy objectives is at greater risk. “It’s just an inflationary shock. And the longer this continues, the more uneasy I become.”