Federal Reserve Board Chairman Jerome Powell stressed on Tuesday that the Ukraine crisis is pushing the prices of commodities, noting the Fed isn't sure about how long this will last. The effects of the war could last longer than expected, he argued, making it harder for inflation to get down to the targeted 2%.
However, Powell emphasized in an interview with the Wall Street Journal there are a number of possible paths to a "softish landing," but that there could be "some pain involved." The Fed has to push ahead with rate hikes, he said. Commenting on supply chains, Powell warned that the COVID-19 lockdowns in China are negatively impacting the world.
Powell concluded his speech by warning that there's a chance the process of globalization could go into reverse to some extent.
