Powell Takes Another Pounding
At today’s HFSC hearing, Chairman Powell encountered the same political headwinds evident at yesterday’s Senate Banking session (see Client Report FEDERALRESERVE70), reinforcing and even heightening his commitment to fighting inflation in concert with hopes that a soft landing may still be possible. Chairwoman Waters (D-CA) followed Chairman Brown’s (D-OH) cautious tone, urging the central bank to be mindful of maximum employment as it pursues price stability and blaming much recent inflation on undue corporate power. Ranking Member McHenry (R-NC) was merciless in his inflation attack, largely directing it to Democrats even as he and other Republicans pressed for faster Fed intervention and reconsideration of the Taylor Rule.