Initially, Jerome Powell said the highest inflation in decades was going to be "transitory." This week, the world's most powerful central banker said the nebulous term should be retired. Such is the high-stakes guessing game going on at the Federal Reserve and the world's central banks, which risk losing public confidence should inflation continue to prove less, well, transitory than expected.

This week, Stephanie delves into the messaging strategies of both central bankers and American corporations. First, Stephen King, a British economist and senior economic adviser to HSBC, suggests Powell's openness to cutting support for the U.S. financial system is meant to reestablish trust with the public by signaling a willingness to tackle inflation. Next, U.S.-based economics reporter Matt Boesler details the selective messaging of U.S. corporations, where profits are up 37% over last year despite rampant CEO complaints about wage inflation.

Finally, Geneva-based economics reporter Bryce Baschuk shares how the debate over intellectual property rights for Covid-19 vaccines is a chance for the World Trade Organization to become relevant again.

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Inflation Poses a Growing Credibility Risk for Central Banks 29:05 Share

Voternomics

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Inflation Poses a Growing Credibility Risk for Central Banks