1. The Fed
Powell got tough with the markets last week but this week he faces his toughest audience - Congress. With the mid-term elections less than six months away, the politicians will be challenging him over how the economy can hope to avoid a hard landing now that interest rates are climbing at the same time as inflation. This is why the third sentence of Powell's opening statement was "We at the Fed understand the hardship high inflation is causing". Expect more of this when he is interrogated by the Senate on Wednesday and . . .
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