US Fed Chair Jerome Powell Warns About Future Inflation, Says the Economy Could Be Entering a Period of More Frequent Supply Shocks

U.S. Federal Reserve Chair Jerome Powell has issued a warning about the future of the American economy.

While delivering opening remarks at the Second Thomas Laubach Research Conference in Washington DC, Powell noted that “longer-term inflation expectations” have driven up real interest rates, which are interest rates adjusted for inflation.

The Fed chair also says those rates could be a sign of things to come.

“Higher real rates may also reflect the possibility that inflation could be more volatile going forward than in 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 the economy and for central banks.

While our policy rate is currently well above the lower

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