The Fed’s dilemma: how long to ‘keep at it’ on inflation

In an eight-minute speech delivered at the foothills of Wyoming’s Rocky Mountains in late August, Jay Powell sought to stamp out lingering doubt about the US central bank’s commitment to fighting the worst inflation in decades.

Invoking the legacy of Paul Volcker — his predecessor who vanquished inflation in the 1980s — the sitting chair vowed the Federal Reserve would “keep at it” until it got price pressures under control.

But two…