Speaking about the central bank’s policy framework review, Federal Reserve Chair Jerome Powell emphasized that economic conditions have changed
Federal Reserve Chair Jerome Powell warned Thursday that long-term interest rates are likely to remain elevated due to shifts in the economy and ongoing changes in policy.
Speaking about the central bank’s policy framework review—last conducted in the summer of 2020—Powell emphasized that economic conditions have changed substantially.
He said the economy may be entering a period of “more frequent, and potentially more persistent, supply shocks—a difficult challenge for the economy and for central banks.”
The review will also examine how the central bank examines “shortfalls” in achieving its inflation and employment targets.