Powell: Fed Misread Inflation Shock From Supply Chain

The transcript discusses the role of economists at the Federal Reserve in analyzing price trends and inflation. It questions whether the Fed had the right data or ignored it, as private economists accurately predicted inflation trends. The transcript explains that the initial rise in inflation was seen as a supply shock, which was expected to be temporary. However, the supply side took longer to recover than anticipated. In hindsight, earlier action was needed. The Fed plans to use its tools to manage inflation while waiting for supply improvements.

What does hindsight suggest about the Federal Reserve's response to inflation trends?

What is the Federal Reserve's outlook on the supply side and its impact on inflation?