Federal Reserve Chair Jerome Powell said Thursday that the economy may be entering a period of more volatile inflation and more regular supply shocks relative to recent decades, in which inflation

Federal Reserve Chair Jerome Powell delivered a sobering message this week: the U.S. economy may be entering a period marked by more frequent and potentially lasting supply shocks that could lead to ongoing inflation volatility.

Powell said Thursday that longer-term interest rates are likely to be higher as the economy changes and policy is in flux.

Past changes to the Federal Reserve's longer-run strategy, including letting inflation run hotter than 2% for "some time," might no longer work for the current economy.

With mounting evidence that tight labor markets do not necessarily boost inflation and facing massive job losses in 2020, Federal Reserve Chair Jerome Powell oversaw a shift in U.S. central bank strategy that put more weight on the goal of full employment and pledged not to use a low jobless rate as a reason in itself to raise interest rates.

Jerome Powell mismanaged the COVID-19 economy. He also failed to understand Joe Biden's inflation. His refusal to cut interest rates risks a third strike.

The Consumer Price Index jumped 2.3% in April from the year before, below March’s 2.4% increase, the Bureau of Labor Statistics said Tuesday.