New Era of ‘Supply Shocks’ Could Force Higher Long-Term Interest Rates, Says Powell

Federal Reserve Chair Jerome Powell’s comments came as the central bank completes a monetary policy framework review.

Federal Reserve Chairman Jerome Powell speaks during the Thomas Laubach Research Conference at the William McChesney Martin Jr. Federal Reserve Board Building in Washington on May 15, 2025. Jim Watson/AFP via Getty Images

A period of supply disruptions may reshape the U.S. economy, leading to unstable inflation and sustained higher interest rates, Federal Reserve Chair Jerome Powell said.

Powell appeared before the Thomas Laubach Research Conference in Washington on May 15 to discuss the U.S. central bank’s monetary policy framework review.