Jerome Powell Makes His Inflation Pivot

We thought Federal Reserve Chairman Jerome Powell would be wary of declaring victory over inflation on Wednesday, but he was wary in formal declaration only. Everything else about his press conference after the latest Federal Open Market Committee (FOMC) meeting suggested that the Chairman’s Paul Volcker era is over. Easier money is on the way.

“The committee is proceeding carefully,” he said. The Fed still wants to see “ongoing progress” toward the Fed’s 2% inflation target, “we still have a ways to go,” and “no one is declaring victory” over inflation.