From Yahoo Finance: 2025-05-15 08:40:00

Federal Reserve Chairman Jerome Powell warns of more supply shocks and volatile inflation. He emphasizes the need for transparent communication from the central bank as they review monetary policy. Powell notes the challenge of maintaining inflation expectations at 2% and the potential for higher interest rates due to increased uncertainty in the economy.

The Fed is conducting a five-year review of its monetary policy framework. Powell addresses concerns about inflation and the need to reconsider language around overshooting the 2% target. He acknowledges that intentional overshooting has not been relevant and members are discussing ways to ensure inflation remains close to the target to prevent falling short.

Powell highlights the Fed’s history of cutting rates during recessions and the importance of conveying uncertainty in economic outlooks. The central bank is exploring ways to improve communication as the economy faces more frequent and persistent shocks. Powell stresses the need for effective communication to navigate these challenges.



Read more at Yahoo Finance: Fed’s Powell says US may be entering period of more frequent and persistent ‘supply shocks’