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Marketplace · August 26, 2026 · 00:25:57

How much power does the Fed really have?

Marketplace examines the Federal Reserve's struggle to bring inflation down to 2% after more than five years, questioning the central bank's power. Other economic news includes falling consumer confidence, a bump in transportation equipment orders, and a look at how Arizona's creative budgeting during the Great Recession could inform tax policy in an AI-driven future. The show also profiles a historic Route 66 motel and water conservation efforts by the Gila River Indian Community.

This summary was generated from show notes and public descriptions, not from a full transcript review. Details may contain inaccuracies.

Preview

The Fed’s struggle to tame inflation
The episode questions whether the Federal Reserve still has the power to bring inflation down to 2%, given that core PCE remains above target after more than five years of rate hikes and quantitative tightening.
Falling consumer confidence
Consumer confidence dropped, indicating growing pessimism about the economic outlook for the next six months.

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