Fed Chair Powell warns energy shocks could shift inflation outlook

Fed Chair Jerome Powell told an economics class at Harvard that energy supply shocks are manageable but could change inflation expectations. He said energy disruptions tend to be short lived, but after years of elevated inflation the Fed cannot assume that will always hold. Powell cautioned the Fed's patience has limits and indicated officials are monitoring conditions that could require tighter policy. His term as Fed chair ends in May, raising the stakes for near term messaging and market reaction.