New York Fed President John Williams said it is premature to assess how the Iran conflict will affect U.S. inflation and growth. Speaking at a conference hosted by America's Credit Unions, Williams noted the American economy is less reliant on imported oil than in the past and has shown resilience to energy price shocks.

Williams emphasized that the primary transmission of the conflict's economic effects would occur through asset prices and financial market reactions, which have been reasonably muted so far. He pointed out that movements in oil prices seen so far do not fundamentally shift the economy, though the Fed will have to assess the persistence of any price changes.

The Fed official acknowledged that oil prices do influence inflation and would change the near-term inflation outlook. He said it is too soon to draw conclusions about spillovers across foreign markets and trading partners. Williams also defended Fed research against criticism, stating it is not part of a political or partisan agenda and is important for the Fed to independently set monetary policy.