Economics
Powell’s Challenge: Reconcile Better Outlook, Ultra-Easy Policy
- Fed forecast expected to show zero rates through 2023, GDP up
- Massive fiscal aid, vaccinations boost optimism on recovery
Jerome Powell
Photographer: Stefani Reynolds/BloombergThis article is for subscribers only.
Federal Reserve Chair Jerome Powell could find himself in a tough spot this week, having to defend his ultra-easy monetary policy outlook amid a quickening economic recovery that’s ignited fears of inflation.
The Fed wraps up its two-day policy meeting on Wednesday, almost exactly 12 months after slashing interest rates to nearly zero as Covid-19 spread. It will publish its policy statement and quarterly forecasts at 2 p.m. in Washington, with Powell holding a press conference 30 minutes later.