Why Jerome Powell decided to go full Volcker: “We must keep at it until the job is done”
Aiming to reduce inflation even at the risk of recession, the Fed Chairman draws on a 1980s playbook. ‘We must keep at it until the job is done.’Photo Illustration: Timmy Huynh/The Wall Street Journal; Photos: Bloomberg News, CQ/Zuma Press, Bettmann ArchiveThe Federal Reserve’s annual August retreat in Jackson Hole, Wyo., was imminent, andon expectations the central bank might slow its pace of interest rate increases.
Fed officials thought investors were misreading their intentions given the need to slow the economy to combat high inflation. In a widely anticipated speech, Chairman Jerome Powell . He scrapped his original address, according to two people who spoke to him, and instead delivered unusually brief remarks with a simple message—the Fed would accept a recession as the price of fighting inflation.
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