This Is How Jerome Powell Can Prevent A Crushing Recession

After this week’s meeting of the Federal Reserve Board, Chairman Jerome Powell should take a hard look at what’s unfolding in the economy, as well as his own assumptions about monetary policy.

This segment of What’s Ahead shows how Powell can still salvage his crumbling reputation—and save us and the world unnecessary economic pain.

Having waited too long to deal with inflation when it was emerging, Powell is in danger of overreacting. The economy is flat, and two leading indicators—the price of gold and a key measure of the economy’s money supply—are flashing red, which means a recession is in the offing.

Powell should grasp that depressing an economy is not the cure for inflation; stabilizing the value of the dollar is.

There are other positive steps Powell should take that would save his reputation—and our well-being.