Federal Reserve Chair Jerome Powell said Thursday that the economy may be entering a period of more volatile inflation and more regular supply shocks relative to recent decades, in which inflation and unemployment remained low.

Powell reflected Wednesday on “the possibility that inflation could be more volatile going forward than during the inter-crisis period of the 2010s,” the decade between the global financial crisis of 2008 and the coronavirus pandemic, which started in March 2020.

“We may be entering a period of more frequent, and potentially more persistent supply shocks, a difficult challenge for the economy and for central banks,” Powell said at a conference reviewing U.S. central bank policy of recent years.

Powell didn’t get into the specifics of what may........

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