Powell's balancing act on inflation, jobs

This is a US news story, published by Yahoo Finance, that relates primarily to Jerome Powell news.

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Fed chairman

Insider

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US Politics

America is dangerously close to the worst kind of recession

Summary

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75% Informative

Federal Reserve Chairman Jerome Powell has to perform a difficult balancing act.

How he addresses this conundrum will have massive effects on the American economy.

Get it wrong and the US could get stuck in the dreaded "stagflation," a condition in which inflation is taking off at the same time the job market is getting weaker.

The Fed took several years to get the 1970s crisis under control.

Peter Bergen : Trade war tariffs could cost households $ 3,800 this year .

He says stagflation presents some nasty possibilities for investors: Prices rise and revenue slows.

Bergen says the Fed is in a reactive position: It can't risk taking action to get ahead of potential tariff inflation for fear of hurting labor market.

We don't know where the Fed will land yet, or if Powell will slip off this nerve-racking policy tightrope.

Your buy-the-dip reflex can work in this environment, you may just have to wait longer for it to play out.

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informal

Language

English

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not offensive