Powell Struggles to Instill Confidence in Fed's Ability to Tame Inflation

Fed Chair Powell keeps repeating that inflation is too high to set expectations and influence actual inflation rates.

The Fed aims to build trust and shape expectations through communication about its inflation target.

Consumers are growing more worried about inflation and don't believe Powell can lower it.

Altering the 2% inflation target could undermine the Fed's credibility and self-fulfilling prophecy.

Powell needs to convince people that inflation will decrease, since expectations influence actual inflation.