Central Banks
Jerome Powell Could Face More Opposition as Fed Choices Get Tougher
- Views differ on need for hikes after expected move this week
- Chair achieved near-unanimity on campaign of steep increases
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Chair Jerome Powell has achieved a near-perfect consensus as the Federal Reserve raised interest rates aggressively. Now, with the hiking campaign drawing to a close, that agreement is going to be a lot tougher to maintain.
With inflation as high as 9% in the past year, Powell’s colleagues were all-in on the fight to curb price pressures, with another 25 basis-point hike expected Wednesday that might be the concluding increase. Yet that consensus is already showing signs of splintering, amid inflation that remains too high while Fed staff — and many private economists — see a recession in coming months.