Federal Reserve Chair Jerome Powell spoke today, March 30, 2026, at Harvard University, addressing students on the economic outlook, the impact of the war in Iran, and the role of artificial intelligence.
Economic Outlook & Monetary Policy
- "Wait and See" on Oil Shocks: Powell indicated the Fed can afford to "wait and see" how the surge in oil prices—driven by the war in Iran—affects inflation before making further policy moves.
- Inflation Expectations: He noted that while short-term prices like gas (inching toward $4/gallon) are rising, longer-term inflation expectations appear to remain "well-anchored".
- Interest Rates: Powell suggested the current policy is in a "good place," signaling the Fed is inclined to hold rates steady rather than raise them in response to recent energy supply shocks.
- Labor Market: He acknowledged a "challenging time" for young graduates entering a lackluster job market with low job creation, though unemployment remains historically low.
Technology & Private Credit
- AI Optimism: Powell expressed optimism that artificial intelligence will boost worker productivity and living standards in the long term, despite its potential to automate middle-management and back-office roles.
- Private Credit Risks: He stated the Fed is monitoring the private credit sector "super carefully" but does not currently view it as a systemic risk to the broader financial system.
Institutional Independence
- Fed Independence: Powell stressed the importance of the Fed sticking to its assigned mandate of maximum employment and price stability, rather than serving political preferences or other administrative goals.
- Leadership Transition: With his term ending in May, he declined to discuss his successor (Kevin Warsh) but noted the Fed's staff and independence are essential to its mission.
All responses may include mistakes. For financial advice, consult a professional. Learn more
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