When Jerome Powell succeeded Janet Yellen as Federal Reserve chief three years in the past, he hosted a farewell ceremonial dinner for her at his house in Chevy Chase, Md.
Again then, Ms. Yellen was passing the baton to Mr. Powell.
Three years later, in some ways, he’s passing a baton again to her.
The Fed spent 2020 combating the financial fallout of the coronavirus pandemic with interest-rate cuts, bond purchases and emergency lending applications. As Fed officers put together to fulfill this week, Mr. Powell sees their insurance policies on maintain as a result of they’ve already dedicated to conserving charges at low ranges.
Ms. Yellen, who was confirmed by the Senate on Monday to function President Biden’s Treasury secretary, hopes to supervise a authorities spending wave aimed toward ensuring joblessness falls a lot decrease and preventing further widening in inequality. Mr. Powell has handed the stimulus baton to her by pledging to maintain charges very low till that occurs.