At a recent symposium, Jerome Powell said that raising rates is unpopular. However, some of his other comments could cause anxiety when taken out of context.
Key takeaways
- Federal Reserve Chair Jerome Powell made comments at a symposium in Sweden on January 10 that, if taken out of context, could be seen as precursors of unpopular Fed policy in coming months.
- In reality, the Fed has been transparent about upcoming rate hikes. There is nothing new about what Powell said in Stockholm.
- Everyone is on the edge of their seat, waiting to see what the Fed does next. However, any plans the Fed has could easily be upended by disturbances in the global economy.
When taken out of context, the words Jerome Powell spoke on January 10, 2023, feel ominous:
“...restoring price stability when inflation is high can require measures that are not popular in the short term as we raise interest rates to slow the economy. The absence of direct political control over our decisions allows us to take these necessary measures without considering short-term political factors.”
Does this mean that the Fed will raise rates even higher or at a speed that is out of line with public opinion? Here’s what you need to know—and how Q.ai can help you amidst uncertain times.
Source : [Fed Chair Powell's Speech Warns Of Unpopular Decisions To Calm Price Stability](www.forbes.com/sites/qai/2023/01/25/fed-chair-powells-speech-warns-of-unpopular-decisions-to-calm-price-stability/) by Q.ai - Powering a Personal Wealth Movement, Contributor - Fed 2023 US Powell•Forbes - Investing by Q.ai - Powering a Personal Wealth Movement, Contributor / January 25, 2023