Can Jay Powell build consensus at a divided Federal Reserve?

Financial Times/Colby Smith/2-16-2022

“’It is very telling to me that there is a lot of debate going on across the committee and there is no consensus about the appropriate pace of tightening,’ said Blerina Uruci, US economist at T Rowe Price. “It seems very much still up in the air.”

USAGOLD note: Colby Smith dissects the current politics of the apolitical Fed. In our view, the consensus is likely to form on the dovish side of the political ledger and likely to become even more dovish once the Biden administration’s new appointees are confirmed.