Powell: Long-term Inflation Expectations Remain Stable, No Urgent Response to Energy Shock Needed

On March 30, Federal Reserve Chairman Powell stated on Monday that despite the ongoing energy shock, long-term inflation expectations appear to remain stable, and the Fed does not yet need to make decisions on how to respond to the latest situation. Speaking at Harvard University, he said, “Inflation expectations beyond the short term seem to remain solid.” Regarding the energy shock related to the war with Iran, he noted, “We are still unclear about its specific impact on the economy, but given that inflation has been consistently above the 2% target level, we will closely monitor its effects on price pressures.”