The Globe and Mail reports in its Tuesday, July 28, edition that the Iran war and the artificial intelligence boom are the biggest wild cards for the Federal Reserve at the moment. A New York Times dispatch to The Globe reports that both have raised prices, but it is unclear whether that will lead to sustainably higher inflation. According to Goldman Sachs economist Jan Hatzius temporary factors, such as tariffs, are the main drivers of recent increases in underlying inflation, and are likely to fade over time. He says, ""Our forecast implies that hawkish talk now ultimately doesn't require a move, because inflation actually looks somewhat better as time passes." The economy has surprisingly held up well amid numerous shocks in the past year and a half, leading some to believe the Fed may need to raise rates to control inflation. Loretta Mester, who led the Federal Reserve Bank of Cleveland for a decade until 2024, say, "It's hard for me to say that the current stance of policy is restrictive given what we're seeing in the economy." She says raising rates would help to "bring demand into better alignment with supply," while also helping to stabilize inflation expectations that appear "more fragile than they've been."