Powell Sees Tension Currently Between Fed’s Two Mandates

Fed Chair Jerome Powell said there is tension between the Fed's two main objectives (price stability and maximum employment) at an event at Harvard. The comment underscores ongoing trade-offs for policymakers and could sustain uncertainty around the timing and pace of rate moves, with potential implications for Treasury yields and risk assets.

Analysis

Fed Chair Jerome Powell said there is tension between the Fed's two main objectives (price stability and maximum employment) at an event at Harvard. The comment underscores ongoing trade-offs for policymakers and could sustain uncertainty around the timing and pace of rate moves, with potential implications for Treasury yields and risk assets.