FILE - The Federal Reserve is seen in Washington, on Nov. 16, 2020. The Federal Reserve is expected to signal this week that it will likely reduce borrowing costs as soon as September 2024.
Powell put himself on a war footing against inflation two years ago, arguing the Fed could always drop rates if the hawkish position proved to be too much for the economy.himself to Paul Volcker, a former Fed chair who famously rolled out policies pushing interest rates to double digits. Volcker presided over the bank when inflation topped out at 14%, compared to the 8.5% rate at the start of Powell's fight.
Other economists argue stocks, rather than showing worrying signs of a recession, are going through a course correction right now. A lot is riding on how the economy weathers the next few months headed into the November elections. That's especially true for Powell. Along with staying away from politics, Powell has also tried to avoid discussing fiscal policy, for the most part. He has deviated in some situations, such as in a "60 Minutes" interview earlier this year when he called the U.S.' current fiscal situation "unsustainable."