Fed Chairman Powell "admits his mistake": the era of long-term low interest rates is over

Odaily Planet Daily News: Federal Reserve Chairman Powell said on Thursday that the Federal Reserve is adjusting its overall policy-making framework to respond to significant changes in the outlook for inflation and interest rates after the 2020 coronavirus pandemic. “The economic environment has changed significantly since 2020, and our review will reflect our assessment of those changes,” Powell said. Nick Timiraos, a "Fed mouthpiece" and Wall Street Journal reporter, pointed out that the Fed adopted the current framework five years ago and began reviewing it this year, and this review is unlikely to affect the way the Fed currently sets interest rates. Powell suggested that higher inflation-adjusted interest rates, or “real interest rates,” that emerged in the wake of the 2020 coronavirus pandemic may make some elements of the Fed’s current framework no longer appropriate. (Golden Ten)