Powell’s Future Could Depend on How Long Inflation Lasts

Replacing Jerome Powell at the Fed would be a mistake, warns Spartan’s Peter Cardillo. “The markets could negatively react to a change of guard,” he says as WSJ reports more progressive Democrats are pressuring President Biden to nominate someone more likely to toughen bank regulation. Cardillo, however, doesn’t think a change is likely. “It’s a lot of noise from the more liberal democrats and if the economy goes in the direction Powell often speaks about, I believe he is safe,” he says. “The key will be if inflation is transitory or structural.”