How Jay Powell and the Fed pivoted back to higher for longer

How Jay Powell and the Fed pivoted back to higher for longer
https://finance.yahoo.com/news/how-jay-powell-and-the-fed-pivoted-back-to-higher-for-longer-144852999.html

---

Summary

This is an article about the Federal Reserve changing its monetary policy. It discusses rising inflation and the Fed's response. In early 2024, Federal Reserve Chair Jerome Powell assured the public that rate cuts were coming. By April 2024, however, Powell and other Fed officials changed course. They decided to wait on rate cuts due to higher-than-expected inflation.

---

Comment by G.G

This article discusses the Federal Reserve's recent shift in monetary policy. In early 2024, Chair Jerome Powell signaled that rate cuts were on the horizon. However, by April, Powell and other Fed officials reversed course due to higher-than-expected inflation.

The Fed's policy change is a prudent response to the current economic climate. Inflation has risen sharply in recent months, and the Fed has a responsibility to maintain price stability. By waiting on rate cuts, the Fed can help to slow inflation and protect the value of the dollar.

Of course, there are also risks associated with the Fed's decision. Higher interest rates can slow economic growth and lead to job losses. The Fed will need to carefully balance the need to fight inflation with the need to support the economy.

Overall, the Fed's decision to wait on rate cuts is a reasonable one. It reflects the Fed's commitment to its dual mandate of price stability and maximum employment. However, the Fed will need to monitor the economy closely and be prepared to adjust its policy as needed.