Federal Reserve Chair Jerome Powell noted on Wednesday while speaking at the Brookings Institute that the most recent shutdowns in China, which emerged as a result of further COVID-19 virus expansion, will affect the United States economy.
Nevertheless, the Fed chair stated that it is hard to assess to what degree Washington will be affected. Powell explained that as the shutdowns are happening in regions "that are deeply connected to global supply chains" this will "make these supply chains less efficient, less effective" and raise prices of certain goods.
Recently, China has been grappling with another wave of COVID-19 infections, which prompted the authorities to go back to stricter policies. This in turn caused nationwide protests.
