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Fed Conspiracy Theories See Powell as Fickle Boyfriend, Wise Man

  • Mystery U-turn spawns speculation over what lies behind it
  • Some see hint of regime change to tolerating higher inflation
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Powell Says Economy in Good Place, Fed Taking Patient Approach to Policy

The momentous, mysterious monetary U-turn by Federal Reserve Chairman Jerome Powell and his colleagues this week has spawned a host of conspiracy theories as to what’s really going on at the world’s most powerful central bank.

They range from the simple -– the Fed is capitulating to the demands of the financial markets and/or President Donald Trump for a halt in interest rate hikes -– to the more subtle: There’s been a policy regime change at the central bank and it’s now deliberately seeking to push inflation above its 2 percent target.