Federal Reserve Governor Stephen Miran said the energy shock triggered by the Iran war has yet to impact longer-run inflation expectations, and he expects price pressures to return to the central bank’s target in a year’s time.

“There’s thus far no evidence that inflation expectations are higher,” Miran said in remarks at an event in Washington Tuesday. “With the labor market on the trajectory of cooling gradually, which it’s been on for about three years now, it’s very unlikely that we get a sort of wage-price spiral. So thus far, the traditional wisdom of the central bank of not responding to the model shock seems to me to be reasonable.”

Evidence suggests that during energy shocks, prices tend to move quickly but then stop, limiting the inflationary impact, Miran said.

“We look forward a year from now, I see inflation running pretty close to our target,” he added.

Minutes of the Federal Open Market Committee’s March 17-18 meeting showed a growing number of Fed officials worried the Iran war could further stoke inflation and wanted to make clear following the meeting that the central bank may have to consider raising interest rates.

At the meeting, officials held the Fed’s benchmark policy rate in a range of 3.5% to 3.75%. Miran dissented, calling for a quarter-percentage-point cut. He has urged fellow policymakers to lower rates at a faster pace since he was appointed a Fed governor by President Donald Trump last September.

Miran was also asked for his view on a proposal to allow providers of stablecoins — a digital asset whose value is fixed to the U.S. dollar — to pay interest to holders. That idea has received some backing in the Trump administration but is fiercely opposed by some banking groups out of fear it could draw away depositors.

“I don’t view it as such a big deal, to be honest,” Miran said. “Paying interest may reallocate some deposits from banks to stablecoins, but I’m not convinced that the magnitudes of that are economically significant.”

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