The Globe and Mail reports in its Tuesday edition that economic shocks at the Federal Reserve last year resulted in divisive votes on interest rates. A New York Times dispatch to The Globe reports that President Donald Trump's tariffs and immigration policies raised concerns about inflation and the labour market, leading to internal debates. The Iran war may further entrench these divisions, complicating consensus-building for Jerome Powell and his successor, Kevin Warsh. If confirmed, Mr. Warsh will face heightened pressure from the White House to lower borrowing costs. Much depends on the trajectory of oil prices from their current $103 (U.S.) a barrel level and how long the conflict lasts. But the sizable nature of the shock has upended forecasts about the economy. Inside the Fed, policy-makers focused on inflation now face new price pressures, while those worried about a weakening labour market must assess its effect on hiring and consumer spending. A former Fed Reserve Bank of Boston president says: "Both sides are going to be able to say that this makes the situation worse, and they're both going to be right. Reported inflation is likely to be higher, and reported labour market conditions are likely to be weaker."