The Middletown Press (Middletown, CT)

Powell defends Fed policies


Federal Reserve Chair Jerome Powell is defending the ultra-low interest rate policies he has pursued since the pandemic decimated the economy more than 18 months ago. He acknowledg­es, however, that inflation has stayed higher for longer than he expected. At a panel sponsored by the European Central Bank on Wednesday Powell said the Fed has avoided the mistake of underestim­ating the severity of pandemic’s economic impact. But criticism of the Fed’s policies has grown in recent months as inflation has jumped to 30-year highs. The economy’s main challenge has also shifted from weak demand as a result of widespread layoffs to supply shortages, which the Fed can do little about.

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