US Federal Reserve's inflation concerns stem from strong domestic demand, not oil prices.

An economist stated that the US Federal Reserve's inflation issue is primarily strong domestic demand rather than oil prices. Oil prices surged due to an attack on Iran, raising inflation concerns; however, the US consumer price index (CPI) rose 3.5% in the past year, above the Fed's 2% goal. Strong job growth and retail sales indicate a robust US economy driving demand-based inflation.