Powell Weighs Another Rate Cut Despite Inflation Worries

Jerome Powell plans to cut interest rates despite persistent inflation, going against economic common sense due to his conflict avoidance style and pressure from the Biden administration.

Cutting rates risks further destabilizing prices if Powell miscalculates again like he did by calling inflation “transitory.”

The Biden administration wants lower rates to boost the economy as a strategy to help Dems get re-elected.

Powell has a history of caving to political pressure, like when Trump attacked him on Twitter.

Great Fed chairs like Volcker tamed inflation by resisting political pressure and staying focused on their mandate.