Federal Reserve Chairman Powell: The Federal Reserve is reviewing the framework revisions made in 2020.

May 15, Fed Chair Powell: Officials agree on the need to rethink strategic language around underemployment and average inflation. does not comment on the outlook or monetary policy; April’s PCE is likely to be around 2.2%. The zero lower bound is still a risk and should be addressed in the framework, but given the current level of policy rates, the zero lower bound is no longer a base case. Some of the Fed’s practices are permanent, such as focusing on inflation expectations. The Federal Reserve is conducting a two-day review of the framework revisions adopted in 2020. The framework must be able to adapt to a variety of scenarios, including a world where supply shocks are likely to be more frequent and persistent. ( gold ten )