Jerome Powell is vowing to keep up the fight against inflation no matter how much pain it causes the economy. Wall Street is betting that he blinks.
Although Jerome Powell has vowed to keep up the fight against inflation no matter how much pain it causes the economy, Wall Street is convinced he'll blink. | Win McNamee/Getty ImagesFederal Reserve Chair
Other new Fed officials outside Washington are economists who have long pushed for broad and inclusive employment. Among them: Austan Goolsbee, a onetime chief economist to former President Barack Obama who recently became head of the Chicago Fed and joined his first central bank policy meeting this week.
The Fed wants to ensure that it keeps rates high long enough to bring inflation fully to heel, fearing a repeat of the 1970s and ‘80s when the central bank backed off, only to see price spikes return. Yet even though consumer price increases have cooled, Fed officials are maintaining their tough talk with the idea of leaving borrowing costs high enough to keep inflation on its downward trend. They say wage growth will need to slow even further. And Fed policymakers have publicly been in lockstep on how fighting inflation is their most important priority.
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