This is Jerome Powell’s shot at a Volcker moment – in reverse
“But what would pulling a Volcker actually look like in 2021? Perhaps it would be the exact opposite of what people imagine. Because despite elevated inflation, the Fed is nowhere close to maximum employment, which it’s mandated to promote alongside stable prices.”
USAGOLD note: In our view, the Biden administration would not have chosen to nominate Powell had he failed to deliver some assurances on this score when interviewed for the job. We should keep in mind, too, that the Board of Governors, once Biden is through with his appointments, will tilt decidedly to the dovish side of the monetary ledger.