Powell Speaks and Congress Faces Funding Deadline

On Thursday Fed Chair Powell spoke at the Cato Institute’s Monetary Conference and reiterated the Fed’s commitment to achieving 2% inflation. It was a strong signal to markets that the message he sent at Jackson Hole was not a “one off” but the policy of the Fed to roll back the post-Covid inflation that started in March 2021.

Powell referred back to the inflationary mentality of the 70s and 80s when inflation was baked into the thinking of both consumers and businesses. He believes ...

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