For Powell, Being ‘Mr. Too Late’ Is Better Than Being Wrong

Jerome Powell’s determination to ensure any jump in prices stemming from Donald Trump’s tariffs don’t spread through the economy has earned him the moniker “Mr. Too Late” from the president. For the Federal Reserve chair, that’s better than being Mr. Wrong.

Only a few months ago, Powell was steering his colleagues and the economy toward a so-called soft landing, a scenario where inflation and interest rates glide lower while unemployment remains low. Trump’s sweeping tariffs have upended the outlook, raising expectations for weaker economic growth and higher inflation this year.

That has prompted Fed officials to shift their strategy ...