Powell Can Improve His Reputation By Avoiding Recession
Federal Reserve head Jerome Powell can improve his reputation by avoiding a recession.
Jerome Powell should take a close look at the state of the economy and his own views on monetary policy in light of this week's Federal Reserve Board meeting.
Powell can still salvage his reputation and save the world from unnecessary economic pain. He is a smart and savvy economist, and I believe he will make the right decisions to help us all recover from the current crisis.
Fed Chairman Jerome Powell is in danger of overreacting to inflationary pressures, which could lead to a recession. Powell has been too slow to act on inflationary pressures, waiting until they have emerged before taking action. Now, with the economy flat and two leading indicators pointing to a recession, Powell risks overreacting. The price of gold and a key measure of the economy's money supply are both flashing red, which means a recession is in the offing.
Powell should grasp that depressing an economy is not the cure for inflation; stabilizing the value of the dollar is. In order to stabilize the value of the dollar, Powell should focus on creating policies that will encourage economic growth and stability.
Powell should take other positive steps to improve his reputation and our well-being. These steps could include being more transparent about his decisions, communicating more effectively with the public, and being more responsive to criticism. Taking these steps would show that Powell is committed to his job and to the American people.
