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Opinion
John Authers

Think of Powell as Volcker's Wannabe Second Coming

The Fed chair is plainly channeling his legendary predecessor, and markets finally realize that no early pivot to ease rates seems likely. 

Fed Chair Jerome Powell says he’ll keep at it. It’s much more than a hint.

Fed Chair Jerome Powell says he’ll keep at it. It’s much more than a hint.

Photographer: Sarah Silbiger/Bloomberg

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It looks like Jerome Powell made himself clear this time. After a bizarre summer in which investors convinced themselves that a Fed “pivot” toward easier money was imminent, the Federal Open Market Committee announced another 75 basis-point hike to the fed funds rate, implicitly promised more of the same, and then watched as markets crossed critical landmarks.