In the wakeofrecentevents, some have discovered, for the first time, a spine when interacting with President Donald J. Trump and his Twitter account. After a year-and-a-half of being on the receiving end of all manner of insults, pettypot-shots and reports that he was an inch away from beingfired, Jeff Sessions suddenly found his voice, scolding our child-president that only racism would drive the Department of Justice, and no other partisan political concerns. Jay Powell, too, albeit in a much more oblique and obsequious way.
The Fed faces two major risks of “moving too fast and needlessly shortening the expansion, versus moving too slowly and risking a destabilizing overheating,” said Mr. Powell. “I see the current path of gradually raising interest rates as the [Federal Open Market Committee’s] approach to taking seriously both of these risks….”
Mr. Trump told donors he was unhappy with the Fed’s recent rate moves and raised doubts about the man he placed in charge of the institution. Mr. Powell began his four-year term as Fed chairman in February.
Well, Trump just might have to see if it’s gonna be four years. And if it isn’t, and he’s able to make it through the rest of his four-year tenure, well, he might have just the person to put before Senate Banking Committee Chairman Sherrod Brown and his capo, Elizabeth Warren: St. Louis Fed chief James Bullard.
"If it was just me, I'd stand pat where we are and I'd try to react to data as it comes in," he said Friday in an interview with CNBC's Steve Liesman. "I just don't see much inflation pressure. ... I'm an inflation hawk, but I just don't see that developing. ... I just don't think this is a situation where we have to be pre-emptive."