A president may fire a Fed chairman for “cause,” but there is no precedent to fire one for doing too little, too late
Federal Reserve Board Chairman Jay Powell was addressing the Fed’s annual gathering in one of the country’s poshest resorts: Jackson Hole, Wyoming. Everyone would parse every word of his speech for clues about what the Fed might do next to fight America’s inflationary spiral.
Last year, in the same watering hole, Powell contended that inflation would be transitory, and he validated his policy of fiscal stimulus and low interest rates.
A year later, inflation has soared to 9 percent and the Fed is playing a game of catch-up, using the time-honored system of raising interest rates to whip inflation now.
Would Powell issue a mea culpa? Would he admit his guilt in priming the monetary pump that contributed to the inflationary spiral?
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