Why central banks are reluctant to declare victory over inflation

As Jay Powell faced reporters on Wednesday following the US Federal Reserve’s first policy meeting of 2024, his mood was confident. 

Hailing “six months of good inflation” and predicting more to come, the Fed chair

: “Let’s be honest: this is a good economy.”

Maybe a little too good. On Friday, markets were stunned by a Bureau of Labor Statistics release that showed the US economy added 353,000 jobs in January — almost double…