Powell: Long-term inflation expectations remain solid; no rush to address energy shocks for now

Golden Finance reports that on March 30, Federal Reserve Chair Jerome Powell said on Monday that despite the ongoing energy shock, long-term inflation expectations appear to remain stable, and the Federal Reserve does not yet need to decide how to respond to the latest situation. He said at Harvard University: “Inflation expectations beyond the short term still appear to be solid.” When discussing the energy shock related to a war with Iran, he said: “We’re not yet sure what the specific impact will be on the economy, but given that inflation is likely to remain above our 2% target level in the long run, we will closely monitor its impact on price pressures.”