The Globe and Mail reports in its Tuesday, March 31, edition that Federal Reserve chair Jerome Powell said Monday that the Fed can afford to wait and see how the Iran war impacts the economy and inflation. A Reuters dispatch to The Globe reports that Mr. Powell's comments seemed to calm financial markets, which had previously anticipated potential rate hikes to combat inflation, as those expectations have largely diminished. Mr. Powell acknowledged the potential squeeze between the Fed's two mandates of full employment and price stability. Mr. Powell said: "There's sort of downside risk to the labour market, which suggests keep rates low, but there's upside risk to inflation, which suggests maybe don't keep rates low. You've got tension between the two objectives." But for now, he said, the Fed does not have to act even as policy-makers watch carefully for signs of deteriorating inflation expectations that could signal a need to respond. "Inflation expectations do appear to be well anchored beyond the short term," Mr. Powell said. The Fed left its overnight benchmark interest rate steady in the 3.5-per-cent to 3.75-per-cent range earlier this month after the end of a two-day policy meeting.