BizBeat Ep. 272: Dizzying U.S. inflation overshadows Powell’s second term at the Fed
U.S. President Joe Biden nominated Federal Reserve Chairman Jerome Powell for a second four-year term on Monday. However, Powell and the Fed face nearly a 30-year high inflation. Complicating the monetary policy, U.S. labor markets are still 4 million workers short of pre-pandemic levels. With the dual mandate of maintaining price stability and ensuring maximum employment, Powell and the Fed are not putting the brakes on inflation for fear of jeopardizing the labor market recovery. But there are rising concerns that Powell is moving too slowly to contain rising inflation, which may force him and the Fed to tighten more aggressively in the future, roiling markets and pressuring a U.S. economy addicted to ultra-accomodative policy. In this episode of Bizbeat, CGTN's Michael Wang explains.