Fed’s Tough Talk Could Be Transitory

“Whip Employment Now” would be a bad slogan but, in its efforts to bring inflation down, it is a message that the Federal Reserve is at risk of sending.

When he spoke at the Kansas City Fed’s annual economic symposium in August 2021, Fed Chairman Jerome Powell detailed why the run up in inflation would likely be transitory. Needless to say, his message on Friday at this year’s symposium was different.