{"id":336332,"date":"2021-09-08T13:00:00","date_gmt":"2021-09-08T10:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/peter-morici-powell-risks-his-legacy-if-he-doesnt-start-tapering-soon\/"},"modified":"2021-09-08T13:00:00","modified_gmt":"2021-09-08T10:00:00","slug":"peter-morici-powell-risks-his-legacy-if-he-doesnt-start-tapering-soon","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/peter-morici-powell-risks-his-legacy-if-he-doesnt-start-tapering-soon\/","title":{"rendered":"#Peter Morici: Powell risks his legacy if he doesn\u2019t start tapering soon"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3385edacc40\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3385edacc40\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/peter-morici-powell-risks-his-legacy-if-he-doesnt-start-tapering-soon\/#The_Fed_shouldnt_allow_the_White_House_or_financial_markets_to_bully_it_into_continuing_easy-money_policies_that_could_lead_to_a_steep_recession_or_stagflation\" >The Fed shouldn\u2019t allow the White House or financial markets to bully it into continuing easy-money policies that could lead to a steep recession or stagflation<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/peter-morici-powell-risks-his-legacy-if-he-doesnt-start-tapering-soon\/#Rising_inflation\" >Rising inflation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/peter-morici-powell-risks-his-legacy-if-he-doesnt-start-tapering-soon\/#Bernanke_the_taper_tantrum\" >Bernanke &amp; the taper tantrum<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/peter-morici-powell-risks-his-legacy-if-he-doesnt-start-tapering-soon\/#Market_distortions\" >Market distortions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/peter-morici-powell-risks-his-legacy-if-he-doesnt-start-tapering-soon\/#More_insights_from_Peter_Morici\" >More insights from Peter Morici:<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/peter-morici-powell-risks-his-legacy-if-he-doesnt-start-tapering-soon\/#Peter_Morici\" >Peter Morici<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Peter Morici: Powell risks his legacy if he doesn\u2019t start tapering soon<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"The_Fed_shouldnt_allow_the_White_House_or_financial_markets_to_bully_it_into_continuing_easy-money_policies_that_could_lead_to_a_steep_recession_or_stagflation\"><\/span>\n  The Fed shouldn\u2019t allow the White House or financial markets to bully it into continuing easy-money policies that could lead to a steep recession or stagflation<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\" role=\"region\" aria-label=\"article body\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000399358\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000399358\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       The Federal Reserve should move quickly to taper purchases of Treasury and mortgage-backed securities, or it risks losing its independence from the whims of politicians and financial markets.<\/p>\n<p> In August 2020, the Fed announced that it would\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/monetary20200827a.htm\" class=\"icon none\">give priority to \u201cmaximum employment\u201d<\/a>\u00a0and no longer act pre-emptively to stem inflation. It would accept a\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2021-06-07\/the-fed-is-risking-a-full-blown-recession\" class=\"icon none\">period of inflation greater than 2%<\/a>\u00a0to compensate for undershooting that target in the 2010s, but the Fed has been vague about how much overshooting is tolerable.<\/p>\n<div class=\"paywall\">\n       Since April, the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bls.gov\/news.release\/cpi.nr0.htm\" class=\"icon none\">annualized pace of month-over-month CPI inflation<\/a>\u00a0has been 8.7%. That\u00a0should not be attributed merely to a rebound in pandemic depressed prices\u00a0for airplane tickets, rental and used cars, hotel rooms and the like. Supply-chain problems\u2014such as those\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/covid-19-surge-in-malaysia-threatens-to-prolong-global-chip-shortage-11630234802?mod=hp_lead_pos6\" class=\"icon none\">for<\/a>\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-08-26\/chip-crunch-will-last-through-2022-toyota-supplier-warns\" class=\"icon none\">computer<\/a>\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/worlds-largest-chip-maker-to-raise-prices-threatening-costlier-electronics-11629978308?siteid=yhoof2&amp;yptr=yahoo\" class=\"icon none\">chips<\/a>,\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2021-08-27\/three-big-ideas-for-fixing-america-s-factory-labor-crunch\" class=\"icon none\">severe shortages of workers in manufacturing<\/a>\u00a0and\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-08-20\/women-are-entering-a-trucking-industry-that-s-not-built-for-them\" class=\"icon none\">transportation<\/a>, climate-change impacts on\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/u-s-crops-wither-under-scorching-heat-11629797401\" class=\"icon none\">agricultural productivity<\/a>, problems in\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-08-25\/the-world-economy-s-supply-chain-problem-keeps-getting-worse\" class=\"icon none\">global transportation<\/a>,\u00a0and the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-06-18\/the-climate-change-fight-is-adding-to-the-global-inflation-scare\" class=\"icon none\">costs of shifting to carbon-free technologies<\/a>\u2014will persist.<\/p>\n<div data-layout=\"header\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaVideo\n            header\n  article__inset\n          article__inset--type-InsetMediaVideo\n            article__inset--header\n  \"><\/p>\n<figure class=\"media-object-video article__inset__video media-object-video--standard\">\n<div class=\"wsj-media-summary clearfix\">\n<div class=\"strap-container\">\n<h4 class=\"strap\" itemprop=\"description\">\n<\/h4><\/div>\n<\/p><\/div>\n<div class=\"video-container article__inset__video__player\" id=\"http:\/\/www.marketwatch.com\/news\/4FAC5B2E-69D2-4EA9-9FEC-6322577FA1B1\" data-src=\"http:\/\/www.marketwatch.com\/news\/4FAC5B2E-69D2-4EA9-9FEC-6322577FA1B1\" data-format=\"standard\" data-esplash=\"\" data-msplash=\"\" data-suppressheadline=\"\" data-verticalstill=\"\">\n  <\/div><figcaption class=\"wsj-article-caption article__inset__video__caption\">\n          The jobs report numbers showed hiring picking up in June, but the overall moderate pace of gains in recent months suggests employers are still struggling to fill the abundance of open roles. WSJ\u2019s Sarah Chaney Cambon explains why workers might not be eager to take those jobs just yet. Photo: Mike Bradley for The Wall Street Journal<br \/>\n        <\/figcaption><\/figure>\n<\/div>\n<h6><span class=\"ez-toc-section\" id=\"Rising_inflation\"><\/span>Rising inflation<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p> Reflecting these,\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-08-13\/u-s-inflation-forecasts-keep-rising-as-supply-constraints-loom\" class=\"icon none\">private economists\u2019 inflation forecasts keep rising<\/a>.<\/p>\n<p>The Fed\u2019s\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.federalreserve.gov\/newsevents\/speech\/powell20210827a.htm\" class=\"icon none\">policy change<\/a>\u00a0is\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2021-07-16\/powell-has-earned-another-term-as-fed-chair?sref=XcONO5zf\" class=\"icon none\">anchored in the view that it tightened too quickly<\/a>\u00a0in the past and denied workers the opportunity to enjoy a sellers\u2019 labor market and bargain for higher pay.<\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.federalreserve.gov\/monetarypolicy\/openmarket.htm\" class=\"icon none\">The Fed raised interest rates<\/a>\u00a0from June 2004 to June 2006 and from December 2015 to December 2018. During both episodes, the unemployment rate continued to fall.<\/p>\n<p>By June 2019, unemployment reached 3.6% but\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/money.cnn.com\/2018\/07\/19\/news\/economy\/federal-reserve-trump-powell\/index.html\" class=\"icon none\">Powell let President Donald Trump bully him<\/a>\u00a0into\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2019-08-28\/trump-is-rude-but-right-about-jay-powell-and-the-fed?sref=XcONO5zf\" class=\"icon none\">stopping the tightening process<\/a>. Now<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-07-07\/biden-eyes-imprint-on-fed-board-as-decision-on-powell-approaches\" class=\"icon none\"> economists at the Biden White House have a preference for accommodative policies<\/a>,\u00a0and Powell is up for re<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointment.<\/p>\n<p>If he leans against\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-08-18\/fed-minutes-show-most-officials-see-inflation-goal-in-hand\" class=\"icon none\">growing sentiment among members of the Federal Open Market Committee<\/a>\u00a0to announce a plan to taper by the end of the year, the appearance of pressure from West Wing economists and their supporters will be salient.\u00a0<\/p>\n<p><strong>Now read:<\/strong>\u00a0Powell\u2019s tough choice: curb inflation or appease the Biden administration<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Bernanke_the_taper_tantrum\"><\/span>Bernanke &amp; the taper tantrum<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>In 2013,\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/timeline-of-significant-fed-events-in-2013-11547219170\" class=\"icon none\">Chairman Ben Bernanke raised the idea of scaling back the Fed\u2019s holdings of mortgage-backed securities<\/a>. The\u00a010-year Treasury rate<br \/>\n        TMUBMUSD10Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel=\"\" class=\"\">1.356%<\/bg-quote><br \/>\n       jumped, a\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.investopedia.com\/terms\/t\/taper-tantrum.asp\" class=\"icon none\">stock-market rout was feared<\/a>,\u00a0and Bernanke proceeded to\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fred.stlouisfed.org\/series\/WALCL\" class=\"icon none\">add more than another $1 trillion to the Fed balance sheet<\/a>, not the reverse.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Monetary policy is supposed to work by the Fed regulating interest rates through the bond market but as the \u201ctaper tantrum\u201d illustrated, financial-market reactions can strongly influence what the Fed does.<\/p>\n<p>Opinions run in both directions as to whether the Fed\u2019s easy-money policies\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2021-08-24\/fed-jackson-hole-meeting-it-decries-wealth-gap-it-helps-perpetuate\" class=\"icon none\">exacerbate wealth inequality by boosting equity and home prices<\/a>\u00a0or\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2021-04-09\/bottom-half-of-u-s-households-post-fastest-gain-in-wealth\" class=\"icon none\">reduce it<\/a>. One thing is clear, stock<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.34%<\/bg-quote><br \/>\n       and housing markets have thrived at higher rates than the\u00a0present Treasury yield of less than 1.5%.<\/p>\n<p>Easy-money policies are no longer needed to create favorable labor market conditions.\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/job-openings-are-at-record-highs-why-arent-unemployed-americans-filling-them-11625823021\" class=\"icon none\">Employers have 10 million jobs they can\u2019t fill<\/a>.<\/p>\n<p>Rock-bottom mortgage rates\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/home-prices-climbed-across-the-u-s-in-second-quarter-11628777839\" class=\"icon none\">may be creating a bubble in housing markets<\/a>\u00a0but do little to increase the supplies of scarce\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2021-06-01\/real-estate-prices-won-t-return-to-earth-without-deregulation?srnd=premium-africa\" class=\"icon none\">building lots<\/a>,\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/commodities-boom-hits-home-11615973404\" class=\"icon none\">materials<\/a>\u00a0and\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.prnewswire.com\/news-releases\/new-report-construction-industrys-worker-shortage-hurts-housing-affordability-and-supply-301272714.html\" class=\"icon none\">skilled tradesmen<\/a>\u00a0and boost the pace of new home construction.<\/p>\n<p>Pulling back on those purchases of mortgage-backed securities would raise mortgage rates and limit bidding wars for new homes, but reducing excess demand would have more constraining impact on housing prices than new home construction and employment.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Market_distortions\"><\/span>Market distortions<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Waiting too long to tighten monetary policy, the Fed is distorting capital markets\u2014in particular,\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/junk-bond-rally-pulls-yields-below-inflation-11625817833\" class=\"icon none\">corporate junk bonds are being sold at terribly low rates<\/a>. Bankruptcies that should have occurred have become\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.washingtonpost.com\/business\/2020\/06\/23\/economy-debt-coronavirus-zombie-firms\/\" class=\"icon none\">zombie enterprises.<\/a>\u00a0Similarly, some of the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2021\/06\/16\/ipo-market-has-hit-records-in-2021-here-are-the-recent-debuts-to-watch.html\" class=\"icon none\">spectacular valuations of IPOs<\/a>\u00a0would not be possible if the Fed were not pumping so much liquidity into capital markets.<\/p>\n<p>Importantly, raising short-term interest rates and slowing bond purchases can take considerable time to affect business decisions and rein inflation.<\/p>\n<p>With its permissive policies, when inflation forces the Fed to tighten, the cycles of rising wages and prices will be entrenched and difficult to break. Higher interest rates will unleash a greater wave of corporate bankruptcies and layoffs, and the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2021-07-14\/powell-testimony-the-fed-has-a-real-estate-fight-on-its-hands?utm_medium=email&amp;utm_source=newsletter&amp;utm_term=210717&amp;utm_campaign=sharetheview\" class=\"icon none\">pullback in home prices<\/a>\u00a0will put recent buyers underwater on their mortgages.<\/p>\n<p>The Fed would face a choice between a tough, deep recession and stagflation\u2014somewhat elevated unemployment and inflation at 3% to 5%, perhaps higher.<\/p>\n<p>The\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/fed-chairman-powell-navigates-the-inflation-debate-11629730921\" class=\"icon none\">longer Powell waits<\/a>, the worse it will be for him, congressional Democrats and President Joe Biden.<\/p>\n<p>With schools reopening and federal unemployment benefits ending in blue states, Powell should begin raising the federal funds rate and scaling back Treasury and mortgage-backed security purchases.<\/p>\n<p>That might cost him his job, but I won\u2019t want his legacy if he caves to political or market pressures to keep buying bonds indefinitely.<\/p>\n<p><em><strong>Peter Morici is an economist and emeritus business professor at the University of Maryland, and a national columnist.<\/strong><\/em><\/p>\n<h6><span class=\"ez-toc-section\" id=\"More_insights_from_Peter_Morici\"><\/span>More insights from Peter Morici:<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>The U.S. needs to rejoin the TPP to meet the China challenge<\/p>\n<p>America\u2019s baby drought poses a risk to our prosperity and security<\/p>\n<p>Does hard work still pay off in America?<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Peter Morici\",\"subhead\":\"The Wall Street Journal\",\"list\":[,{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/pmorici1\",\"text\":\"@pmorici1\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:contributors@marketwatch.com\",\"text\":\"contributors@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Peter_Morici\"><\/span>Peter Morici<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-7617-FEFDFF65A431%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Peter Morici: Powell risks his legacy if he doesn\u2019t start tapering soon&#8221; The Fed shouldn\u2019t allow the White House or financial markets to bully it into continuing easy-money policies that could lead to a steep recession or stagflation The Federal Reserve should move quickly to taper purchases of Treasury and mortgage-backed securities, or it risks&#8230;<\/p>\n","protected":false},"author":1,"featured_media":336333,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-336332","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/336332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=336332"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/336332\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/336333"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=336332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=336332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=336332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}