Powell's big caveat on looking past the energy price shock: "You can have a series of these supply shocks and that can lead the public generally—businesses, price setters, households—to start expecting higher inflation over time. Why wouldn’t they?" The dilemma for the Fed: An energy shock can simultaneously push prices higher and drag down economic growth by squeezing household budgets and raising costs for businesses. That leaves policymakers weighing whether to prioritize fighting inflation or cushioning the economy, well aware that the standard tools for solving one problem may make the other worse. Powell dances around saying how the Fed would answer such a riddle. "We will eventually maybe face the question of what to do here. We're not really facing it yet because we don't know what the economic effects will be." https://www.wsj.com/economy/central-banking/powell-says-fed-can-look-past-oil-shock-but-warns-patience-has-limits-c3d5b09e?st=9xkGQD&reflink=desktopwebshare_permalink(Nick Timiraos)