How Powell’s policy revolution was blindsided by the virus
Concerns are growing that the US Federal Reserve’s plan of super-loose monetary policy is out of date and bad for the economy. There’s a lot at stake for Jerome Powell - and Joe Biden - in getting it right.
When Federal Reserve Chairman Jerome Powell rolled out a new modus operandi for running monetary policy at the elite Jackson Hole economic symposium a year ago, the economy was just coming out of a pandemic-driven nosedive. That was after a decade of disappointingly slow growth, with inflation stubbornly below target.
