09:15 AM EDT, 05/15/2025 (MT Newswires) -- Federal Reserve Chairman Jerome Powell said Thursday that there is now a greater risk of inflation swings, something the Fed will need to consider as it conducts its once-every-five-year policy framework review.

Powell was speaking at Second Thomas Laubach Research Conference to introduce discussions as part of revising the policy framework.

"Longer-term interest rates are a good deal higher now, driven largely by real rates given the stability of longer-term inflation expectations," Powell said, noting that the higher rate "reflect the possibility that inflation could be more volatile going forward than in the inter-crisis period of the 2010s."

While not mentioning the Trump Administration's tariffs explicitly, Powell acknowledged that "(w)e may be entering a period of more frequent, and potentially more persistent, supply shocks -a difficult challenge for the economy and for central banks."

While there are likely to be changes to the framework, Powell said that the need to anchor inflation expectations remains and has already said in recent comments that the Fed's 2% inflation is not going to be altered.