Powell did a lousy job all the last few years. Held many months on to the transitory inflation talking point and then cut rates before elections obviously to help democrats. Worse human being on this whole planet now wouldn't cut rates for months when economy is spiraling into recession.
Powell hasn’t been perfect — no Fed chair has — but in this cycle, his wait-for-the-data approach is defensible. The economy is not spiraling into recession, and the Fed stands ready to act if it starts leaning that way.
Less defensible is the White House stance: it triggered the latest round of potential inflation with tariffs, then got upset when the Fed wouldn’t cut rates on command to offset the impact. Evidently, the White House believed tariffs were inflationary, which is why it wanted preemptive cuts. So far, the Fed has been right to hold back. Inflation hasn’t taken off.
And for the record, Powell doesn’t act alone. Interest rates are set by the Federal Open Market Committee — a group of voting members, not a one-man show. That’s true now, and it’ll remain true no matter who holds the chair. At least, that’s the idea.
Powell did a lousy job all the last few years. Held many months on to the transitory inflation talking point and then cut rates before elections obviously to help democrats. Worse human being on this whole planet now wouldn't cut rates for months when economy is spiraling into recession.
Powell hasn’t been perfect — no Fed chair has — but in this cycle, his wait-for-the-data approach is defensible. The economy is not spiraling into recession, and the Fed stands ready to act if it starts leaning that way.
Less defensible is the White House stance: it triggered the latest round of potential inflation with tariffs, then got upset when the Fed wouldn’t cut rates on command to offset the impact. Evidently, the White House believed tariffs were inflationary, which is why it wanted preemptive cuts. So far, the Fed has been right to hold back. Inflation hasn’t taken off.
And for the record, Powell doesn’t act alone. Interest rates are set by the Federal Open Market Committee — a group of voting members, not a one-man show. That’s true now, and it’ll remain true no matter who holds the chair. At least, that’s the idea.