Jerome Powell faces a tough row

 to hoe fending off politicians who favor easy-money policies while maintaining the stability of the nation’s banking system and lowering U.S. inflation to 2%.

From 1979 to 2009, annual increases in the consumer price index averaged 4% vs. 1.8% in the 2010s. Now the U.S. may be reverting back to that prior norm.

Although President Joe Biden nominally supports Powell, the Fed’s sovereignty over the money supply is a grant from Congress that can be withdrawn. 

Congress could favor low unemployment over price stability, or the president could appoint left-leaning governors like he did with Lisa Cook to appease Congress.

Last year, Powell pronounced that such printing of money has few consequences for inflation, apparently endorsing Modern Monetary Theory. 

Peter Morici MarketWatch April 25, 2023 

https://www.marketwatch.com/story/powell-and-the-fed-may-be-susceptible-to-the-same-mistakes-that-stoked-inflation-in-the-1970s-8af41c05

Still Rethinking the Fed

John Mauldin April 21, 2023

https://englundmacro.blogspot.com/2023/04/still-rethinking-fed.html

The widely accepted idea that rates will eventually fall back to pre-pandemic levels...

https://englundmacro.blogspot.com/2023/03/the-future-doesnt-look-good-for.html

We are more likely looking at 4% than 2% inflation over the next decade

https://englundmacro.blogspot.com/2022/06/we-are-more-likely-looking-at-4-than-2.html