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Powell vs. Greenspan on inflation approach

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Zero Hedge/Joseph Carson/7-27-2021

graphic image of the White House with piles of greenbacks in front of it
“A ‘hands-off’ policy is a short-term friend to finance until it isn’t, whereas a ‘hands-on’ is a long-term friend as it attempts to limit the scale of the inflation cycle. Greenspan’s “hands-on” policy worked, and early results indicate Powell’s “hands-off” isn’t. How long will it take before investors realize Powell will eventually need to follow Greenspan’s plan?”

USAGOLD note: Such thinking will figure largely within the Biden administration as it contemplates who will chair the Fed come February of next year. The White House will be heavily in favor of the “hands off” approach and will worry about Powell, a Republican, changing course if/when he is reappointed. Lael Brainard, often touted as the most likely alternative, favors the progressive agenda embraced by the Biden White House.

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