2020 Fed Transcripts Reveal Powell's Fateful Rate Guidance Push Amid Pandemic

• Federal Reserve's 2020 transcripts show Chair Jerome Powell strongly advocated for specific guidance on interest rates during the COVID-19 pandemic.
• Powell pushed to keep rates near zero until maximum employment and 2% inflation were met, despite internal pushback from several colleagues.
• Critics argue this strong commitment led to a delayed Fed response when inflation surged, peaking at 7.2% in mid-2022, far exceeding the 2% target.
• Policymakers like Rob Kaplan and Neel Kashkari dissented, with Kaplan wanting less commitment and Kashkari advocating for more.
• Powell later expressed regret over the September 2020 guidance, acknowledging he wouldn't make the same commitment again.

Why It Matters: 2020 Fed transcripts reveal Powell's controversial push for specific rate guidance, later regretted amid surging inflation.