Powell Says Pandemic Could Alter Inflation Dynamics

Federal Reserve Chairman Jerome Powell said the pandemic had disrupted the economy in ways that might fuel more inflation or volatility in price pressures that could complicate how central banks manage economic growth.

“The economy is being driven by very different forces. What we don’t know is whether we’ll be going back to something that looks like, or a little bit like, what we had before,” he said during a moderated discussion Wednesday at the European Central Bank’s annual economic policy conference in Portugal.