After a presentation dogged by muffled audio and then climate-change protesters, Fed Chair Jerome Powell finally got his message across, which was, basically, that he didn’t have one.
It was “historically unusual” that inflation has come down without unemployment rising. Geopolitical tensions are “highly uncertain.” In the Q&A, he talked of the idea that the 20 years before the pandemic may have been a perfect storm of disinflation that may now yield to a period of more supply shocks. “Are we going into such a… I don’t know.”...
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