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Jerome Powell faces turbulent 2022 as Fed walks economic tightrope
The economic impact of killing Biden’s bill
Committee to Unleash Prosperity’s Steve Moore and former Reagan economic adviser Art Laffer join ‘Kudlow’ to deconstruct president’s spending bill.
Federal Reserve Chairman Jerome Powell is entering 2022 with the American economy on shaky ground, teeing up a challenging year for the U.S. central bank as it accelerates its withdrawal of support, all while navigating the ever-changing landscape of the coronavirus pandemic – this time without the aid of trillions of dollars in fiscal stimulus.
Wall Street forecasters are dialing back their growth projections for next year as fading hopes for the president's sweeping economic agenda and heightened concerns about the new COVID variant have clouded the outlook. In many ways, the U.S. is ending this year in a remarkably similar position in which it began: Although vaccines are now widely available the country is facing a fresh wave of infections – driven by a highly contagious variant.
The economy is on solid footing and is poised to end 2021 with fourth-quarter growth as high as 7%, but economists say there are warning signs looming.
FED DOUBLES TAPER RATE, EYES THREE RATE HIKES IN 2022
"There are serious headwinds to worry about," said Brad McMillan, chief investment officer for the Commonwealth Financial Network. "Inflation is at the highest level in decades. Supply chain problems seem to be insoluble. If these issues keep getting worse, they could derail the recovery."