Two testy Senate exchanges show the Fed's dilemma

Two senators — one Republican, one Democrat; one from Louisiana, the other from Massachusetts — gave Powell a hard time Tuesday on the same theme: that the central bank seems dead-set on putting millions of Americans out of work with monetary tightening.

The big picture: The two unusually testy exchanges were a preview of what is likely to be a key dynamic, both for the central bank and for U.S. political debates heading into the 2024 elections.

Why it matters: The persistence of elevated inflation and a red-hot job market have made hopes of a painless disinflation look more remote in recent weeks. But to the degree American workers bear the brunt of that adjustment, it will intensify bipartisan pressures on the central bank.

Every month that passes without inflation receding raises the odds that the Fed will keep tightening, and pushes the eventual pain closer to the presidential election cycle.