Federal Reserve Chair Jerome Powell to Speak at Harvard on Economy and Inflation

Speaking at Harvard, Jerome Powell said long-term inflation expectations remain stable despite an energy shock, while noting the Federal Reserve has not yet decided its policy response.

Summary

At a Harvard appearance on March 30, Federal Reserve Chair Jerome Powell said long-term inflation expectations remain stable despite the ongoing energy shock. He said the Federal Reserve has not yet determined how it will respond and will continue to monitor the effect on price pressures, with inflation still running above the central bank’s 2% target. This adds substantive remarks to the previously scheduled event focused on the economy, inflation and monetary policy.

Terms & Concepts
  • Inflation expectations: The rate of future inflation that households, businesses, and markets anticipate, which can influence pricing, wages, and monetary policy decisions.
  • Monetary policy: Central bank actions on interest rates and liquidity to manage inflation, growth and financial conditions.
  • Federal Reserve: The central bank of the United States, responsible for monetary policy and financial system oversight.