In perhaps the least surprising conference over the past several months, Federal Reserve Chair Jerome Powell announced that the Fed was leaving its target interest rates untouched for now.
At last Wednesday’s press conference, Powell reiterated the Fed’s commitment to make data-driven decisions in accordance with its “dual mandate,” which is to stabilize prices and secure maximum employment.
But, in reality, fulfilling one half of the Fed’s mandate tends to be the most pressing concern at a given point in time. Right now, as has been the case for three years, that concern is inflation. So long as inflation is well above 2% yearly growth and the labor market does not collapse, the Fed will continue to focus on inflation.
