The new Powell doctrine
The Fed has taken a bold gamble under Jerome Powell. Will he get to see it through?
NO ONE CAN accuse him of inconsistency. Over the past year Jerome Powell, chairman of the Federal Reserve, has again and again used the same phrasing to kick off his press conferences after it sets interest rates. “Good afternoon. At the Federal Reserve, we are strongly committed to achieving the monetary-policy goals that Congress has given us: maximum employment and price stability.” It may not set pulses racing. But that is just how Mr Powell wants it: a projection of control, in terms any schoolchild can understand.
This article appeared in the Finance & economics section of the print edition under the headline “The new Powell doctrine”
Finance & economics August 28th 2021
- The new Powell doctrine
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- Xi Jinping’s talk of “common prosperity” spooks the prosperous
From the August 28th 2021 edition
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Trump wastes no time in reigniting trade wars
Canada and Mexico look likely to suffer
How Trump, Starmer and Macron can avoid a debt crunch
With deficits soaring, their finance ministers will have to be smart
What Scott Bessent’s appointment means for the Trump administration
The president-elect’s nominee for treasury secretary faces a gruelling job
What Donald Trump and Bernie Sanders get wrong about credit cards
Forget interest rates. Rewards are the real problem
Computers unleashed economic growth. Will artificial intelligence?
Two years after ChatGPT-3.5 arrived, progress has been slower than expected
Should investors just give up on stocks outside America?
No, but it is getting a lot harder to keep the faith