Powell says he remains cautious about the impact of energy shocks

MetaMuskRat · 2026-04-02T12:22:04+00:00

Federal Reserve Chairman Powell stated that in response to the energy shock triggered by the Middle East conflict, the Federal Reserve will remain on hold, monitoring the impact of price trends on inflation expectations. His remarks eased market concerns about monetary policy tightening, with the probability of rate hikes falling to 2.6%. At the same time, the Federal Reserve will pay attention to adjustments in the private credit market.

MetaMuskRat

2026-04-02 12:22:04

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People’s Finance News, March 31—On March 30, U.S. Federal Reserve Chair Jerome Powell said that, amid an energy shock triggered by the escalation of conflict in the Middle East, the Fed is inclined to stand back and temporarily ignore the impact of this shock. However, he also warned that if rising prices begin to change the public’s long-term expectations for inflation, the Fed may not be able to continue to sit idly by. Powell’s remarks eased market concerns that the Fed might be forced to tighten monetary policy to rein in inflation. The CME FedWatch tool shows that the market’s expectation for a 25-basis-point rate hike in April has fallen to 2.6%. Powell also said that the Fed is closely monitoring the private credit market and noted that the current difficulties are more like a market adjustment. (CCTV Finance)

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