By WSJ City
Jerome Powell is entering the most perilous stage yet of his tenure as Federal Reserve chairman, fighting to keep the US from recession while taking the blame from President Trump for skittish markets and a slowing economy.
--- Powell is steering the Fed toward more rate cuts, though conditions could change.
--- The debate at the Fed: how much to move rates, and how to frame the decision.
--- Any move will be closely scrutinised by markets and the White House.
--- Powell is set to speak at a central bankers' conference at Jackson Hole on Friday.
--- Many hope that will shed lights on the Fed's path.Powell raised rates late last year.
--- That added to volatility, and some analysts called it a mistake.
Why This Matters
The stakes are high all around. Wall Street forecasters have raised their odds of a recession, and the state of the economy in 2020 will influence Trump's reelection effort.
The president ripped Powell as "clueless" after markets dropped last week, the latest in a string of disparaging remarks. Trump has lauded economic systems where central banks are under tight control, a view that has raised worries among current and former Fed officials. The central bank's officials see their independence as critical to markets and the economy.
A fuller story is available on WSJ.com
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(END) Dow Jones Newswires
August 19, 2019 05:36 ET (09:36 GMT)
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