From CNBC: 2025-05-15 08:55:00

Federal Reserve Chair Jerome Powell discussed the likelihood of higher long-term interest rates due to changing economic conditions. Powell highlighted the central bank’s policy framework review last conducted in 2020, noting the challenges of balancing employment support and inflation control. The Fed has been cautious about easing policy despite President Trump’s tariffs impacting growth and inflation. Powell aims to develop a five-year plan for guiding decisions and public communication. The review will address how the Fed handles “shortfalls” in inflation and employment goals, emphasizing improved communication during uncertain economic environments. Powell did not provide a specific timeline for completing the review.

Read more: Fed’s Powell cautions about higher long-term rates as ‘supply shocks’ provide policy challenges