Federal Reserve Chair Jerome Powell said Wednesday that he expects a normalization of the supply chain snarl that has led to shortages of key production materials and helped push inflation up to a 30-year high, but the timing of the fix remains “highly uncertain.” Powell made the remarks in a speech (pdf) following the conclusion of the Fed’s two-day policy meeting on Nov. 3, at which the central bank left interest rates unchanged but voted to proceed with a gradual rollback of the central bank’s massive bond-buying program. “Our tools cannot ease supply constraints,” Powell said, referring to the Fed’s monetary policy arsenal, which was deployed in full force to help lift the economy from the pandemic lows but which has become increasingly at odds with rampant inflation. Powell added that Fed policymakers “continue to believe that our dynamic economy will adjust to the supply and demand imbalances, and that as it …
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