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Energy inflation has been more persistent than expected, Fed's Goolsbee tells CNBC

BY Reuters | ECONOMIC | 10:14 PM EDT

May 27 (Reuters) - Chicago Federal Reserve President Austan Goolsbee told CNBC on Thursday that energy inflation tied to the war in Iran has lasted longer than expected.

Goolsbee also sounded a warning for Asian economies in the interview, saying that, because they are energy importers, "it's more just a stagflationary shock of the old-fashioned variety."

(Reporting by Gnaneshwar Rajan in Bengaluru; Editing by Jacqueline Wong)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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