TechFlow news, on May 15, according to Jinshi Data, Federal Reserve Chair Powell stated that the Fed is adjusting its overall policy-making framework to address significant changes in inflation and interest rate outlook following the 2020 pandemic. Powell said: "The economic environment has changed significantly since 2020, and our assessment will reflect how we view these changes." The Fed adopted its current framework five years ago and began evaluating it this year. The review is unlikely to affect how the Fed currently sets interest rates. Powell previously indicated the Fed might complete this process and release results by August or September. Powell noted that inflation-adjusted "real" interest rates have risen since the 2020 pandemic, which could impact elements of the Fed's current framework. He stated, "Higher real interest rates may reflect the possibility that inflation could be less stable in the future than during the crisis-free period of the 2010s. We may be entering a period where supply shocks are more frequent and potentially more persistent—posing a significant challenge for both the economy and central banks."
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