Fed’s Powell: There’s no returning to pre-pandemic economy

By MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell says the U.S. economy has been permanently changed by the COVID pandemic and it’s important that the central bank adapt to those changes. Powell said Tuesday at a Fed virtual town hall for educators and students that the Fed needs to understand the ways that the economy has changed and what the implications are for the central bank’s monetary policy. He said that it is not clear if the delta variant will have important effects on the economy. But he added that the country has already seen significant changes since the pandemic began shutting the country down in March 2020.