Powell: Future Inflation Volatility May Increase, the U.S. May Face a Prolonged Supply Shock Period

Powell stated that future inflation could be more volatile, and the U.S. may be entering a period of more frequent and longer-lasting supply shocks, which poses a significant challenge for both the economy and the central bank.

Powell mentioned 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 uncertainty and risk in forecasting. 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.