Fed's Powell may have made US monetary policy boring again
Published On Dec 2, 2024, 6:09 AM
The article discusses how Federal Reserve Chair Jerome Powell's approach to monetary policy has shifted from a crisis-driven role during the pandemic to a more traditional, stable stance focused on controlling inflation. The Fed is likely to adopt a more cautious inflation-targeting approach in the future, making its role less prominent in economic discussions. This is reflected in changes in policy and leadership expectations as the U.S. economy stabilizes. Powell is now seen as a figure who may restore normalcy to central banking after a period of unprecedented measures due to economic crises.
Stock Forecasts
XLF
Positive
The Federal Reserve's move back to a more traditional approach to monetary policy, coupled with rising interest rates, could indicate less volatility in financial markets. Investors might shift focus from interest-sensitive stocks to sectors that thrive in a more stable economic environment.
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