2 former Fed economists say Chair Jerome Powell is facing an epic conundrum
1. Fed Chair Powell navigates tariffs and cooling labor market challenges. 2. Rate cuts risk unanchoring inflation expectations; hikes could trigger panic. 3. Tariffs complicate Fed's dual mandate of controlling inflation and supporting jobs. 4. Historical parallels to the 1930s tariff scenario highlight Fed's difficult position. 5. Consumer price pressures may rise as companies exhaust inventory stockpiles.