Powell predicts ‘significant’ inflation drop but job market strength means more rate hikes
PBS NewsHourAPR 3 2023
Fed Chair Jerome Powell is doing his best to navigate a murky financial situation as the economy remains hot amid high inflation. While some may criticize him for not sticking to an exact plan, he's keeping his options open to make the best decisions as new data continues to emerge. While markets and consumers alike want security, the Fed must remain flexible to tackle an evolving financial landscape.
The Fed is trying to correct its own mistakes, but it's too late. It printed an exorbitant amount of money in a very short time and pumped it into the economy at the first sign of distress. Now the Fed is trying to reverse course and tighten monetary policy too much. Central Banks are in a difficult situation of their own making, and the forecast isn’t pretty.