Jerome Powell explains why Federal Reserve was caught off guard by current inflation

Jerome Powell.
(Image credit: Graeme Jennings-Pool/Getty Images)

During his Tuesday confirmation hearing, Federal Reserve Chair Jerome Powell attempted to explain why the central bank failed to anticipate the historic levels of inflation plaguing the country, CNN reports.

Powell, who is expected to win a second term leading the Fed following a renomination from President Biden, said protracted supply chain issues and workers' slower-than-expected return to the job market are to blame for the Fed's nearsighted inflation call, CNN notes.

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Brigid Kennedy

Brigid Kennedy worked at The Week from 2021 to 2023 as a staff writer, junior editor and then story editor, with an interest in U.S. politics, the economy and the music industry.