The biggest threat to the economy right now: Jerome Powell's ego
Despite the encouraging inflation news and the resilience of the economy, the chances of a soft landing will ultimately come down to one thing: Powell's view of his place in history. The current bout of inflation has drawn many comparisons to the sustained price surges of the 1970s and 1980s, when the CPI rose as high as 14.5%.
Barry Gill, the head of investments at UBS Asset Management, also suggested that the Fed will not pause its fight against inflation — much less pivot to supporting the economy with interest-rate cuts — because of Powell's eye for history. And as much as Powell does not want to end up with a historic reputation like Burns, he has also long admired Volcker, even going so far as to crib some of. And some experts believe Powell's focus on the real economy, even at the expense of the stock and bond markets, is a close parallel to Volcker's.
While history may look back favorably on Powell if he manages to control inflation, many experts and economists believe that too much emphasis on fighting the inflation battles of the past could end up defining Powell's legacy in a different way.While economists and historians will litigate Powell's reputation for years to come, most experts agree that a continued upward drive in interest rates will cause severe pain for American workers and the stock market alike.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Great white shark decapitates diver in first fatal attack of 2023: report“He was diving when the animal attacked him, impressively ripping off his head and biting both shoulders,” eyewitness Jose Bernal said.
Read more »
Hundreds turn out for 5th annual King Cake-OffThe 2023 King Cake-Off was held Friday at the Mobile Civic Center.
Read more »
The best smart wallets in 2023: top 11 options you should buy | Digital TrendsSmartwallets not only ensure a convenient place to store your money but also protect against theft or loss. Here are some of the best smart wallets available.
Read more »
Cardano Founder: Things Moving Quickly, Tons of DApps Coming OnlineCardano founder excited about rapid progress, influx of dApps on horizon CardanoCommunity CardanoADA BuildingonCardano ADA $ADA
Read more »
Where Are Stocks, Bonds and Crypto Headed Next? Five Investors Look Into Crystal BallMany investors say equities still look expensive after a promising start to 2023
Read more »
We Asked Buyers to Reveal the Best Spring 2023 Accessories—Here’s What Made the CutThere seems to be a unanimous agreement on quiet luxury handbags.
Read more »