Inflation risks have gone down, says US Federal Reserve chair

Oil prices drop as US president says he is getting along well with Iran; talks are reportedly happening in Doha.

Published 1 July 2026 268 words
BUSINESS B1
Inflation risks have gone down, says US Federal Reserve chair

The head of the US Federal Reserve, Kevin Warsh, has said that inflation risks and expectations have decreased recently. He confirmed the Fed’s aim to bring inflation down to its 2% target.

Christine Lagarde, the President of the European Central Bank, also commented that the risks for inflation and economic growth in the Eurozone are now more balanced. This is partly because oil prices have recently fallen.

Oil prices went down by more than 1%. This happened after news that the US and Iran are continuing their talks in Doha, with Qatar and Pakistan helping to mediate. US President Donald Trump said that the United States is getting along very well with Iran.

Technical discussions between the US and Iran are happening in Doha. They are trying to agree on shipping through a key waterway and achieve a lasting ceasefire. Trump mentioned that the denuclearization of Iran is progressing well and that they have had good meetings.

Vocabulary

inflation — the rate at which prices for goods and services are rising, and therefore the purchasing value of money is falling.
risks — the possibility that something bad or unpleasant might happen.
decreased — became less or smaller.
balanced — having a stable or pleasing arrangement of parts.
mediate — to try to help two groups of people who disagree to reach an agreement.
technical — relating to a particular subject or skill, often in a practical way.
ceasefire — an agreement to stop fighting.
denuclearization — the act of removing all nuclear weapons from a place or country.

Discussion Questions

  1. What did Kevin Warsh say about inflation risks?
  2. Why have oil prices fallen?
  3. Who is helping to mediate the talks between the US and Iran?

Based on an article from The Guardian.

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