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Last Speech by Jerome Powell: Beware of Energy Inflation and Stay the Course at the Fed

Chairman of the Federal Reserve, Jerome Powell, delivered his final statement before his term ends on May 15. Powell emphasized that short-term US inflation expectations have increased, with PCE inflation projections reaching 3.5% by March 2026. He specifically warned that a surge in energy prices will continue to drive inflation higher in the near future.
The geopolitical situation in the Middle East is described by Powell as a major factor contributing significant uncertainty to the US economy. Although inflationary pressures are rising, Powell stated that the Fed's current policy stance remains (appropriate). This statement signals that the Fed will not rush to ease monetary policy amid the heated macroeconomic conditions.
As a surprising closing point, Powell confirmed that he will remain on the Fed Board of Governors even after his chairmanship ends. This indicates Powell will continue to influence monetary policy under the new leadership. This statement also marks the end of an era of Powell's leadership and the beginning of a new, more challenging phase of Fed policy amid global uncertainty.