Powell "admits mistake": The era of low interest rates has ended
ChainCatcher news, according to Jinshi reports, Federal Reserve Chairman Powell stated in his opening remarks at the Thomas Laubach Research Conference today that the Federal Reserve is adjusting its overall policy-making framework to address significant changes in inflation and interest rate outlooks following the COVID-19 pandemic in 2020. Powell said, "The economic environment has changed significantly since 2020, and our review will reflect our assessment of these changes.""The Fed's mouthpiece," Wall Street Journal reporter Nick Timiraos pointed out that the Federal Reserve adopted the current framework five years ago and began reviewing it this year, and this review is unlikely to affect the way the Fed currently sets interest rates. Powell hinted that the higher inflation-adjusted rates (i.e., "real rates") that emerged after the COVID-19 pandemic in 2020 may render certain elements of the Fed's current framework no longer applicable.