Fed Chairman Powell’s speech at the Jackson Hole Symposium last week was hawkish. His speech seemed to reinforce what many in the markets had been discussing, that the economy will likely require restrictive policy for some time. In addition, he noted that the longer the current bout of high inflation continues, the greater the chance that expectations of higher inflation will become entrenched. He also said that reducing inflation is likely to require a sustained period of below-trend growth. Most of his comments appear to be hawkish, while hinting at the possibility of a recession. Comments from the Fed’s Williams, ... (full story)