Economics

Powell’s Econ-101 Lesson Presents Best-Case Inflation Scenario

Fed chair explains theory why price pressures could fade fast
Vertical supply curve would be easy up, easy down for economy

Jerome Powell
Photographer: Eric Lee/Bloomberg

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By Matthew Boesler

July 20, 2022 at 9:00 AM UTC

This article is for subscribers only.

Federal Reserve Chair Jerome Powell is dusting off the supply and demand curves every student learns about in economics to explain what the US central bank is doing to bring inflation under control.

The trouble is, his story only presents a best-case scenario.