Powell: Fed yet to decide on whether to "look through" war's impact

Federal Reserve Chair Jerome Powell told Harvard economics students on Monday that the Fed is not yet deciding whether to overlook economic effects from the Iran war energy shock, saying the central bank will "wait and see how that turns out." Powell noted that inflation expectations remain "well-anchored" despite recent declines toward the Fed's 2% target, reducing immediate pressure to adjust policy. The Fed chair also offered guidance to his successor, Kevin Warsh, who awaits Senate confirmation, cautioning against using Fed tools for purposes beyond the central bank's assigned mandate. Powell emphasized that building consensus at the Fed depends on genuinely listening to colleagues rather than simply communicating at them—a principle he said applies to Capitol Hill relations as well.