Finance & economics | Free exchange

Should central bankers argue in public?

Division is not always a weakness

Illustration of two identical men, wearing glasses and suits, are standing behind a podium with multiple microphones, facing each other and pointing fingers. One man is wearing a red tie, and the other is wearing a blue tie.
Illustration: Álvaro Bernis

Jerome Powell’s tenure as chairman of the Federal Reserve has been admirably sure-footed. But on July 31st he may have stumbled when he announced that interest rates would remain at 5.25-5.5%. This was soon followed by unexpectedly weak employment data. Markets around the world then plunged as investors worried that the Fed had fallen behind the curve.

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This article appeared in the Finance & economics section of the print edition under the headline “Great divide”

From the August 10th 2024 edition

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