WATCH: Fed Chair Powell addresses energy price spikes, challenging job market in Harvard conversation

Federal Reserve Chair Jerome Powell warned Monday that the Fed must closely monitor inflation as energy prices spike due to the Iran war. Powell made the remarks during a conversation at Harvard, where he also addressed challenges in the job market. The comments reflect concern that energy price volatility could feed into broader inflation pressures, complicating the Fed's efforts to manage price stability. Energy price shocks have historically posed risks to inflation control, particularly when combined with a tight labor market. Powell's statement signals the Fed is weighing how external geopolitical factors might influence its monetary policy decisions ahead.