When Jerome Powell succeeded Janet Yellen as head of the Federal Reserve three years ago, he hosted a farewell dinner for her at his home in Chevy Chase, Md.
At the time, Mrs. Yellen passed the baton to Mr. Powell.
Three years later, in many ways, he gives a baton back to her.
The Fed spent 2020 fighting the economic fallout from the coronavirus pandemic with rate cuts, bond purchases and emergency credit programs. As Fed officials prepare to meet this week, Mr. Powell put their policy on hold because they have already committed to keeping rates low.
Ms. Yellen, who is on the verge of becoming President Biden’s Treasury Secretary this week, hopes to oversee a wave of government spending to keep unemployment from dropping much lower and prevent further inequalities from growing. Mr. Powell has handed the incentive baton to her by pledging to keep rates as low as possible until that happens.