Powell thinks rate rises are working. Is he right?
It was subtle, but Jerome Powell gave the air of someone with more command over his mandate than at any time this year. The Fed chairman, however, has no control over global instability.
After the embarrassment of being caught flat-footed against supply-side price surges last year, Federal Reserve chairman Jerome Powell looked slightly more comfortable in his skin when he addressed the media on Wednesday (Thursday AEST).
After two aggressive 0.75 percentage point interest rate rises in as many months, Powell and his colleagues have landed close to a “neutral” Fed funds rate – of between 2.25 and 2.5 per cent – where monetary settings are neither stimulatory nor contractionary.
Subscribe to gift this article
Gift 5 articles to anyone you choose each month when you subscribe.
Subscribe nowAlready a subscriber?
Introducing your Newsfeed
Follow the topics, people and companies that matter to you.
Find out moreRead More
Latest In North America
Fetching latest articles