Federal Reserve Chairman Jerome "Jay" Powell stood at a podium at the Fed’s headquarters in Washington, D.C., sending a stern message to the global investment community: The central bank was going to tighten the money supply, even if it hurt.
The Fed had been maintaining rock-bottom interest rates and pumping trillions of dollars into the banking system through an extraordinary program called quantitative easing.” But now it was time to withdraw that stimulus, to keep the economy growing and inflation low. The process, Powell proclaimed, was on automatic pilot”: It would not be slowed or hindered, even if stock prices plunged or the bond market panicked. The Fed was created to do hard things like this, insulated from political pressure, and Powell was determined to do them. Taking a more hawkish stance has been a good decision,” Powell said. And I don’t see us changing that.”
It was a scene that could have played out any number of times in 2022, as Powell and the Fed stepped up to fight an unprecedented surge in consumer prices. But this speech took place on Dec. 19, 2018. Powell was still in his first year as Fed chair. The Fed had been pursuing QE” for nearly a decade, to combat the effects of the Great Recession—and worries over how its actions could distort the economy were growing in Washington and on Wall Street alike.
This story is from the December 2022 - January 2023 edition of Fortune US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 2022 - January 2023 edition of Fortune US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
AI Isn't Coming for Your Job At Least Not Yet
So far, the technology has replaced only a small number of workers. But the future risks many more.
THE TRUTH EVEN HE CAN'T DUCK
Aflac's DAN AMOS has spent his 34 years as CEO selling insurance against illness and death. Now he has to confront his aging customers' mortality and his own.
THE NEW HOLLYWOOD POWER PARADIGM
Inside the sisterhood of stars changing the narrative.
SAUDI ARABIA'S POWER PIPELINE
The oil earnings flowing from the most profitable company in history are helping the Saudi kingdom shake up the global economyand the old geopolitical order.
THE [FOREVER] FOUNDER
Michael Dell turned his dorm-room PC company into the go-to hardware provider for 99% of the Fortune 500. Now the longest-standing founder-CEO in tech has a chance to cash in on the AI bbom—and make himself and his company bigger than ever.
HOW BOEING BROKE DOWN
Boeing's strategy sent the stock soaring more than 1,000% over 20 years. But it contained dangerous flaws that are only now coming into view amid a drumbeat of terrible news.
The Art of Banking
To appeal to the ultrawealthy, banks like UBS keep fine art-and art expertsclose at hand.
Is the Bitcoin Bull Market Safe to Buy?
ETFs have made Bitcoin investing easier than ever. But they may be adding air to a bubble.
Goodbye, Tough Guy
More executives are going on all-male retreats to open up, feel less lonely, and build empathy.
Memo to Silicon Valley: Bring It On
New York City's Runway was the pioneering leader in Al-generated video for years. Now ChatGPT maker OpenAl is coming for it.