“If things go well the first time, might as well try it again” might be Fed Chairman Jerome Powell’s mantra as he prepares for next week’s policy meeting, economists say.
Echoing that speech, Powell will emphasize that the Fed is resolved to get inflation back to its 2% target, and that the central bank is firm in its belief that interest rates will remain at high levels for an extended period, Adams said.For instance, Fed Gov. Christopher Waller told CNBC that “there is nothing that is saying we need to do anything imminent, anytime soon, so we can just sit there [and] and wait for the data.
Even if the August consumer inflation report wasn’t as benign as the June and July report, “we’re seeing the level of inflation has downshifted,” she said.A year ago, many economists said lowering inflation without a big jump in unemployment was not possible.