The Economic and Political Genius of Jay Powell
The Federal Reserve chair deserves credit for reducing inflation without causing a recession — but his greatest achievement is maintaining bipartisan support for the bank’s programs.
Take a bow, Mr. Chairman.
Photographer: Al Drago/Bloomberg
Federal Reserve Chair Jerome Powell is too good of a politician to declare victory over inflation right now. After all, the 3.2% year-over-year growth in the Consumer Price Index announced last week is still above the Fed’s official target of 2%. Besides which, any triumphalism from him would play as an endorsement of “Bidenomics” and read as partisan.
But 3 is a lot closer to 2 than it is to 9 (the annual inflation rate just more than a year ago). Most of the inflation-fighting is over — and it happened without the recession that many observers feared would be necessary. Not only is that a tremendous achievement for Powell himself, but it is also affirmation of the notion that monetary policy is too important to be left to economists.