PANews May 15 news, according to Jinshi, Federal Reserve Chairman Powell said that the Federal Reserve is adjusting its overall policy-making framework to respond to significant changes in the outlook for inflation and interest rates after the 2020 epidemic. "The economic environment has changed significantly since 2020, and our assessment will reflect our assessment of these changes," Powell said. The Federal Reserve adopted its current framework five years ago and began evaluating it this year. The assessment is unlikely to affect the way the Fed currently sets interest rates. Powell previously said that the Fed may complete the process and announce the results by August or September. Powell said that after the 2020 epidemic, the rise in "real" interest rates adjusted for inflation may affect elements of the Fed's current framework. He said, "Higher real interest rates may reflect the possibility that inflation may be more unstable in the future than during the inter-crisis period of the 2010s. We may be entering a period of more frequent and potentially more persistent supply shocks - a difficult challenge for both the economy and the central bank."
Powell: The Fed is adjusting its overall policy-making framework
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