Powell: Future Inflation Volatility May Intensify, U.S. Could Face Prolonged Supply Shock Period
On May 15, local time, Federal Reserve Chairman Powell delivered a speech at the second Thomas Laubach Research Conference. Powell stated that inflation may become more volatile in the future, and the U.S. may be entering a period of more frequent and prolonged supply shocks, which poses a daunting challenge for the economy and the central bank.
Powell indicated that the Federal Reserve will revisit certain aspects of its strategic framework based on experiences from the past five years and will also consider improving the committee's policy communication tools regarding forecasting uncertainty and risks. In the current review, the committee is discussing lessons learned from the past five years and plans to complete its review of specific modifications to the consensus statement in the coming months.