Federal Reserve Chair Jerome Powell, in his second day of congressional testimony, told the Senate Banking Committee that the economy was in a sensitive phase.
“In this very sensitive time at the moment, it’s important for us to be careful in the way we conduct policy simply because things are so uncertain and we don’t want to add to that uncertainty,” he told Senate lawmakers on Thursday.
Federal Reserve Chairman Jerome Powell said the upward pressure on inflation was expected to continue for “at least awhile” and flagged the risk that the Ukraine crisis will prolong supply chain problems, which have been a key driver of inflation.
“It is not going to help at all with supply chains, because ships are not being offloaded,”
Fed Chair Jerome Powell noted that the surge in energy prices will likely spill into inflation, and if that shift proved to be lasting, it could put upward pressure at the “margin” to longer-term expectations.
Markets continue to be unsettled as investors pore over developments between Russia and Ukraine and wrestle with the economic outlook against the backdrop of higher rates and perkier inflation.
“Volatility is going to continue to be around and an issue,”
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