U.S. Federal Reserve officials feel they need to reconsider the key elements around both jobs and inflation in their current approach to monetary policy given the inflation experience of the last few years and the possibility that supply shocks and the associated price increases may become more frequent in the years ahead,

Fed Chair Jerome Powell said the Trump administration’s tariff increases were “significantly larger than anticipated,” but their full extent on the economy is “highly uncertain” given that these trade policies are still evolving.

The Federal Reserve is gearing up to re-evaluate how it sets and communicates monetary policy in light of economic shifts of the last five years, chair Jerome Powell said Thursday. The big picture: The Fed is reviewing its monetary policy framework — the goals and methods it uses to set interest rate policy and communicate it to the public — for the first time since 2020.