Powell Says Longer-Term Inflation Expectations Remain in Check

Federal Reserve Chair Jerome Powell said longer-term inflation expectations appear to be in check but that the central bank is carefully monitoring them as it assesses the effect from the US and Israel’s war against Iran.

Inflation expectations seem to be “well anchored beyond the short term,” Powell said Monday during an event at Harvard University in Cambridge, Massachusetts. He added that officials may need to respond to the impact from the conflict, but that it’s not the case yet.

“We don’t know what the economic effects will be,” he said. “We do think our policy ...