, Columnist
The Fed’s Actions Don’t Match Powell’s Words
The central bank was right to raise interest rates, but the chairman’s explanation is puzzling.
Choosing his words carefully.
Photographer: Pool/Getty Images North AmericaThis article is for subscribers only.
The Federal Reserve embarked last week on its long-advertised monetary tightening: a quarter-point increase in interest rates, with the suggestion of six more by the end of the year, and a plan to run down its stock of government debt (details to follow). This was widely expected and essentially a non-event.
Much more interesting was the way Fed Chair Jerome Powell explained what the central bank was doing. This was downright puzzling, and it raises some questions about what comes next.