Powell exits Fed with crisis record clouded by inflation miss

Jerome Powell is stepping down as Federal Reserve chair after more than eight years, leaving a legacy defined by aggressive crisis management during the pandemic and criticism that the central bank was slow to recognize the post-COVID inflation surge. Economists said Powell helped stabilize markets during historic shocks, including the 2020 pandemic downturn, but his Fed misjudged inflation as “transitory” before launching one of the fastest rate-hiking cycles in decades. The policy pivot reshaped borrowing costs, asset prices and expectations for U.S. growth. Powell’s tenure will likely be judged on whether the Fed’s tightening campaign ultimately contained inflation without causing a severe recession. His exit comes as investors assess the next chair’s approach to rates, labor-market risks and the central bank’s credibility.