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 although the current energy shock is ongoing, long-term inflation expectations appear to remain stable, and the Federal Reserve does not yet need to make a decision on how to respond to the latest situation. He said at Harvard University: “Inflation expectations beyond the short term still appear solid.” When discussing the energy shock related to a war with Iran, he said: “We still don’t know its specific impact on the economy, but given that inflation is expected to remain higher in the long term than the 2% target level, we will closely monitor how it affects price pressures.”