Schrodinger’s FED

Powell argued in his post-meeting press conference that the economy right now — with inflation still well above the Fed’s 2% target and the labor market showing signs of weakening — is one where disagreements are to be expected. “A very large number of participants agree that risks are to the upside for unemployment and to the upside for inflation, so what do you do?” Powell said. “You’ve got one tool, you can’t do two things at once. It’s a very challenging situation.” So for now, the central supposition is that growth will be strong enough that the Fed has […]