Aspen, Colo. ? Federal Communications Commission Chairman Michael Powell said Monday the threat of terrorism and the “despicable activity” of some companies had led to a shift toward more regulation that could harm innovation and the economy.

“I do see a mood swing in Washington. I see a mood swing in the country,” Powell said at the Aspen Summit, a technology and telecommunications summit held by the Progress and Freedom Foundation, a Washington think tank.

Powell said he worried about the rising belief that regulations did a better job than free markets because “the telecommunications sector and the high-tech sector are at a point in history where they can ill afford to be lined up with that kind of thinking.”

He also said industry bore much of the blame. The litany of corporate fraud cases has undermined the public’s trust and generated support for more regulations, he said.