When Jerome Powell succeeded Janet Yellen as head of the Federal Reserve three years ago, he offered her a farewell dinner at his home in Chevy Chase, Md.
At the time, me. Yellen handed the baton to mr. Powell transferred.
Three years later, in many ways, he gives a stick back to her.
The Fed has spent 2020 combating the economic consequences of the coronavirus pandemic with interest rate cuts, bond purchases and emergency lending programs. As Fed officials prepare to meet this week, see Mr. Powell put their policies in jeopardy because they were already committed to keeping rates low.
Me. Yellen, who plans to become President Biden’s treasury secretary this week, hopes to oversee a government spending wave aimed at ensuring unemployment falls much lower and further increases in inequality occur. Mr. Powell handed her the stimulus stick by promising to keep rates very low until that happens.