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HIGH INFLATION, FALLING UNEMPLOYMENT PROMPTED POWELL’S FED PIVOT


OFFICIALS HAVE LAID THE GROUNDWORK TO MORE QUICKLY END A PANDEMIC-ERA STIMULUS
PROGRAM AT THEIR MEETING NEXT WEEK

Watch: Powell Says Inflation Factors Will Linger ‘Well Into Next Year’
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Watch: Powell Says Inflation Factors Will Linger ‘Well Into Next Year’

Fed Chairman Jerome Powell discussed in a Senate hearing the factors driving
continued inflation and the risk the Omicron variant poses for the economy.
Photo: Al Drago/Bloomberg News
By
Nick Timiraos
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NICK TIMIRAOS

 * Biography
 * @NickTimiraos
 * Nick.Timiraos@wsj.com

Updated Dec. 6, 2021 5:33 am ET

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Just four weeks ago, the Federal Reserve set in motion carefully telegraphed
plans to gradually wind down a bond-buying stimulus program by June. Officials
are making plans to accelerate the process at their policy meeting next week,
ending it by March instead.

The abrupt shift opens the door to the Fed raising interest rates next spring
rather than later in the year to curb inflation, marking a significant policy
pivot by Chairman Jerome Powell shortly after President Biden offered him a
second four-year term leading the central bank.

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