Federal Reserve Chair Jerome Powell said he thinks it’s rather “likely” that the forces of de-globalization will mount, leading to a more fractionalized new normal characterized by higher inflationary pressures, lower productivity, and slower economic growth.
Powell made the remarks on June 29, during a panel discussion at the European Central Bank’s annual policy forum in Sintra, Portugal.
“We’ve lived through a period of disinflationary forces around the world—this is globalization, aging demographics, low productivity, technology enabling all of that,” Powell said, describing it as a world where inflation was generally “not a problem” in most advanced economies….