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.

Every five years the Federal Reserve reconsiders its framework for monetary policy. This time it will have to consider lessons from the pandemic and an uncertain future.

Recent economic trends point to the possibility that the Federal Reserve will have to grapple with sudden shocks to the supply of goods and commodities in the coming years.

Fed Chair Jerome Powell just quietly admitted the economy was entering a period of more frequent and potentially more persistent "supply shocks.”