Why the Fed Looks Likely to Scramble Back to a Hawkish Stance

With inflation looking sticky, where does the Fed go now?

by Greg Robb
Market Watch

Flash back to August 2022, when Fed Chair Jerome Powell gave a nine-minute speech at Jackson Hole, Wyo., warning investors to expect “some pain” in the economy in order to lower inflation.

His blunt, hawkish remarks now seem like a distant memory. Over the past six months, Powell and his colleagues have been leaning dovish, strongly hinting they were preparing to cut interest rates.

“They kind of came out and did a victory lap a little too soon,” said Ellen Meade, a former top Fed staffer and now an economics professor at Duke University.

That’s likely going to change this week, economists said.

Continue Reading at MarketWatch.com…