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Powell’s Inflation Strategy Takes Fire From Ex-Top Fed Officials

  • Chair takes the most heat from ex-colleagues since the 1970s
  • Former officials predict a recession and much higher rates
Jerome Powell

Jerome Powell

Photographer: Al Drago/Bloomberg

While Chair Jerome Powell has won united support from the current Federal Reserve policy making team for his latest gameplan to pull down inflation, he’s facing heated criticism from former colleagues, including his recent top lieutenants.

Richard Clarida, who was Powell’s vice chair until January, said this week that interest rates will have to go to levels his former boss hasn’t acknowledged. Randal Quarles -- until October Powell’s other vice chair, for supervision -- was harder hitting, saying the team ought to have started battling inflation last September, and the Fed now faces a likely recession to bring prices under control.