The divide between investors with trillions at stake reflects just how tough monetary policy itself has become, as price pressures remain high and readings of headline and underlying inflation send mixed signals.

"The heavy lifting is done, but it doesn't mean the job is finished."

As price increases seem to have passed their peak, the next big question for the U.S. economy will be how far—and how fast—inflation will fall.

Following in the footsteps of inflation-slayer Volcker, Powell openly endorses raising rates into restrictive territory with the aim of cooling off the labor market.

The Fed won't consider interest-rate increases until the labor market heals further, even though inflation may run hot for months.

In Senate Banking Committee appearance, the Fed chair said bond buying would not increase, just shift from ETFs to certain corporate issues.

Covid-19 will increase consolidation of resources with large global businesses, especially in tech and retail sectors.

Fed watchers worry that long-term agency independence may require a messy post-Covid divorce from the U.S. Treasury.