11:48 AM EDT, 03/30/2026 (MT Newswires) -- Federal Reserve Chairman Jerome Powell said Monday that inflation expectations remain well anchored after an expected short-term price shock from the conflict in Iran, noting that the longer lag with which monetary policy works allows the Federal Open Market Committee to look past brief supply shocks.

Powell, speaking live to a class of economics students at Harvard University, emphasized the need for the FOMC to act independent of political forces and noted that the FOMC lacks to the tools deal with short-term price spikes. As a result, Powell said that the FOMC should remain focused on inflation expectations.

"Inflation expectations do appear to be well anchored beyond the short term," said Powell, who added that the FOMC has time to see if that is the case or if it is longer-term and needs to be considered in policy decisions.

Powell's comments are in line with those by Fed Governor Stephen Miran and other officials who suggested that the FOMC needs to look through short-term price shocks and react to the slowing labor market without fear that the one-time jump in oil prices will trigger more widespread inflation.

Other Fed officials have been less certain about the temporary aspect of the price gains, with Fed Governor Lisa Cook indicating last week that inflation is now a larger concern than employment and others saying that the FOMC should maintain the target rate until the uncertainty clears.