At least for now, Powell has something that Burns didn’t have: political support for taking action to combat inflation.
Biden, who held a rare meeting with Powell last month, has repeatedly reaffirmed the Fed’s independence to do what it thinks is necessary to tackle surging prices. And the president has also made clear that he considers high inflation to be the No. 1 economic issue facing the US.
“Inflation is the bane of our existence,” Biden told ABC television late-night host Jimmy Kimmel in a June 8 interview.
--With assistance from Philip Aldrick.
This article was provided by Bloomberg News.