The End of Fed's Expansive Era? Powell's Back-to-Basics Approach

The Federal Reserve, under Jerome Powell’s leadership, is shifting from its expansive role during recent crises to a more traditional focus on interest rates and inflation control. This transition marks a return to “plain vanilla” central banking, potentially making monetary policy less dramatic but more stable. The change comes as the economy stabilizes and inflation shows signs of control, possibly reducing the Fed’s prominence in economic policymaking.