MONETARY POLICY PLAYS SECOND FIDDLE
Given the magnitude of geopolitical developments, we expect even Congress’s acute concern about inflation to be secondary when Chairman Powell comes before HFSC and Senate Banking later this week. To be sure, there will be a lot of talk about energy prices and the extent to which these will accelerate price increases or decelerate tightening at the next FOMC meeting. Even so, Congress has more immediate concerns, one suitable to the geopolitical situation and the other mired in Congress’s own high-priority politics.