Powell’s High-Stakes Balancing Act: Fed’s Dilemma Sparks Market Turmoil and Record Highs
Fed’s Balancing Act: Growth vs. Inflation In his remarks, Powell emphasized the unusual mix of a robust economy (above-trend GDP growth and surging productivity) alongside persistent inflationary pressures. Federal Reserve economists now face “a duel” of forces – big fiscal and trade shock versus a tech/AI-driven boom – as EY’s Gregory Daco puts it Reuters. Fed Governor Christopher Waller bluntly…
