Skip to content
Opinion
John Authers

In Closing Out 2021, Powell Needs Room to Maneuver

The Fed won’t want to tie itself down, but the latest data should make markets brace for higher interest rates and medium-term inflation.

Squint and you can almost see 1979 in the inflationary data.

Squint and you can almost see 1979 in the inflationary data.

Photographer: Chris J. Ratcliffe/Bloomberg

To get John Authers' newsletter delivered directly to your inbox, sign up here.


 

The last financial denouement of 2021 is almost upon us. Over three days, most of the world’s central banks will hold their last monetary policy meetings of the year. The chances are that they will diverge, given confusing readings on the economy, and on the pandemic that has profoundly affected it over the last two years. It’s also likely that the Federal Reserve, reporting Wednesday afternoon, will set the tone to which all others must respond.