Powell’s ‘temporary’ retreat is just the beginning

For months, Powell insisted that inflation was temporary. Instead of promptly reconsidering his claim in the face of overwhelming evidence to the contrary, he adopted an increasingly elastic concept of words in favor of longer and arbitrary time periods. at the cost of the rigor of economic analysis. That ensures that the Fed continues to buy massively every month in marketable securities at a time when the economy is doing well, the housing market is hot, and “everything goes up” in financial assets. signs of excessive risk. – is taking.