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Jerome Powell Channels Alan Greenspan in Putting Stamp on Fed

  • Fed’s new strategy gives it much leeway in pursuing its goals
  • Democrat, Republican lawmakers welcome the reworked approach
Alan Greenspan
Alan GreenspanPhotographer: Zach Gibson/Bloomberg

Federal Reserve Chairman Jerome Powell makes no secret of his admiration for Alan Greenspan. And now, more than half-way through Powell’s four-year term, his Fed is looking a lot like that of the man once dubbed the monetary maestro.

It is a Fed that, as pronouncements at the institution’s virtual policy symposium last month made clear, prioritizes flexibility in setting monetary policy as it grapples with a pandemic that has devastated the economy. There will be no hard-and-fast rules that determine when to raise interest rates and when to cut them.