Powell’s Future Could Depend on How Long Inflation Lasts

DOW -WSJ Interview
August 10, 2021
INSTANT VIEW 1-U.S. July CPI data show consumer price increases slowed, inflation still high
August 11, 2021

Powell’s Future Could Depend on How Long Inflation Lasts

Replacing Jerome Powell at the Fed would be a mistake, warns Spartan’s Peter Cardillo. “The markets could negatively react to a change of guard,” he says as WSJ reports more progressive Democrats are pressuring President Biden to nominate someone more likely to toughen bank regulation. Cardillo, however, doesn’t think a change is likely. “It’s a lot of noise from the more liberal democrats and if the economy goes in the direction Powell often speaks about, I believe he is safe,” he says. “The key will be if inflation is transitory or structural.”