With inflation and Ukraine, Powell must thread a needle on Capitol Hill this week to calm markets
“We think Powell will emphasize that amid heightened geopolitical uncertainty the Fed remains focused on its macro objectives and will continue to move ahead with policy normalization with a view to bringing inflation back towards target while sustaining employment,” Krishna Guha, head of central bank policy strategy for Evercore ISI. “We think he will acknowledge that the Russia Ukraine crisis and its stagflationary impulse from higher energy prices (inflation higher, growth lower) creates additional challenges for policy,” Guha added….