Powell Inherits Fed Rate-Hike Debate With Inflation Doubts Lingering
- December minutes lack explicit signal about first-quarter hike
- FOMC grappling with too low inflation and effect of tax cuts
Jerome Powell
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
The Federal Reserve is getting ready to welcome a new chairman amid doubts and divisions among policy makers about how many times to raise interest rates this year.
Jerome Powell will take over from Janet Yellen in early February, if he is confirmed by the Senate as expected. He will lead a policy-making committee that, judging by a record of its last meeting released on Wednesday, still thinks the gradual pace of tightening it followed last year is correct. But the debate also highlighted a split between officials concerned about low inflation and others pointing to robust growth about to get a further boost from tax cuts.