Fed Chair Powell Urges Flexibility in Economic Forecasting, Signals Policy Tightening Amid Inflation Concerns

Federal Reserve Chair Jerome Powell emphasized the need for the central bank to go beyond traditional mathematical simulations in forecasting the economy. Powell stated that the Fed won't hesitate to tighten policy further if appropriate and expressed lack of confidence in having sufficiently restrictive policies to combat inflation. These remarks indicate the Fed's willingness to adapt to the dynamic economic landscape and take further action if necessary.