Fed needs to revise US jobs and inflation strategy to stabilize economy — Powell

US Federal Reserve (Fed) Chairman Jerome Powell has stated the central bank should rethink its approach to fostering employment and controlling inflation in response to evolving economic conditions. Speaking at the Fed's two-day strategy conference, Powell highlighted the increasing likelihood of more frequent and sustained supply shocks in the near term, thus complicating monetary policy decisions.

The official emphasized that the central bank's 2020 strategy may no longer be appropriate for today's environment. Although consumer price growth in the US has slowed to 2.2% without serious economic damage so far, the regulator needs to adopt a more active stance on future inflationary shocks.

Meanwhile, officials remain cautious about the impact of recently imposed trade tariffs and continue to analyze post-pandemic changes to the country's financial system. The Fed currently maintains its interest rate at 4.25–4.5% as it seeks greater clarity on the economic outlook, Reuters reported.