Did Powell tame inflation?
J. P. Marín-Arrese | Jerome Powell boasts having curbed the recent inflation flare through resolute tightening of monetary policy. While the need to perform rate hikes seems obvious, it seems far from evident it stood as the paramount driving force. For, as is now clear, the Fed delivered negative rates throughout the inflationary bout and only undertook lukewarm efforts to drain the excess liquidity fearing the danger of a credit-crunch….