, Columnist
Jerome Powell Hints at a Little Trouble With the Curve
An inversion might change the Federal Reserve’s plans for rate hikes.
No one knows exactly what tightening should look like.
Photographer: Alex Wong/Getty Images
This article is for subscribers only.
Federal Reserve Chairman Jerome Powell didn’t give bond traders a lot to chew on during his testimony before the Senate Banking Committee on Tuesday.
He reaffirmed that gradual interest rate hikes are the best option “for now.” He’s pleased with the labor market and the pickup in the pace of inflation. He answered questions about the Fed’s stress tests and even confirmed that he doesn’t view the European Union as an enemy of the U.S.