Powell: The Federal Reserve is adjusting its overall policy-making framework.

PANews reported on May 15 that according to Golden Ten, Federal Reserve Chairman Jerome Powell said that the Federal Reserve is adjusting its overall policymaking framework to deal with major changes in the outlook for inflation and interest rates after the epidemic in 2020. "The economic environment has changed significantly since 2020 and our assessment will reflect our assessment of those changes," Powell said. "The Fed adopted its current framework five years ago and began evaluating it this year. The assessment is unlikely to affect how the Fed currently sets interest rates. Powell has previously said that the Fed will likely complete the process and publish the results by August or September. Powell said that the rise in inflation-adjusted "real" interest rates after the pandemic in 2020 could affect elements of the Fed's current framework. "Higher real interest rates may reflect the likelihood that inflation may be more volatile in the future than it was in the inter-crisis period of the 21st century," he said. We may be entering a period of more frequent and potentially more protracted supply shocks – a daunting challenge for both the economy and central banks. ”