WASHINGTON (AP) — With employers hiring, consumers spending and companies raising some prices, Federal Reserve Chair Jerome Powell is embarking on a high-stakes gamble. Powell’s bet is that the Fed can keep rates ultra-low even as the U.S. recovery kicks into high gear — and that it won’t have to quickly raise rates to stop runaway inflation. It’s just the kind of gamble that in the past led some of Powell’s predecessors to miscalculate and inadvertently derail the economy. Powell and the rest of the Fed’s policymakers plan to keep rates near zero until nearly everyone who wants a job has one, even after inflation has crept above their 2% annual target level.
Powell’s high-stakes bet: More jobs but only mild inflation
