$BTC Federal Reserve Chairman Jerome Powell said on Thursday that interest rates are likely to remain at high levels, due to changes occurring in the economy.

Powell added that Federal Reserve officials see the need to reassess the fundamentals related to employment and inflation within their current monetary policy approach, in light of the inflation experience of recent years, and the possibility that supply shocks accompanied by rising prices may become more frequent in the future.

Powell clarified in his opening remarks at a two-day conference to reassess the monetary policy approach adopted by the Federal Reserve in 2020: "We may be entering a period of recurring, and possibly more persistent, supply shocks — a difficult challenge for the economy and for central banks."

He continued: "The economic environment has changed significantly since 2020, and our review will reflect our assessment of those changes." Powell's comments suggest the possibility of broad adjustments to the strategy that was considered at its launch to be a significant shift in the Federal Reserve's approach, as he had shown a willingness to take on more risks in favor of a stronger labor market and to accept higher inflation levels after periods of weakness.

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