Could this be the ultimate poisoned chalice in monetary history? Joe Biden’s decision this week to grant a second term to Jay Powell at the Federal Reserve looked judicious from the administration’s perspective but the challenges that the chair faces rate close to 10 on the Richter scale.

It is not simply that inflation is racing away, with consumer prices up 6.2 per cent in the year to October while personal consumption expenditures, the Fed’s preferred measure of inflation, have risen 4.1 per cent over the same period, the highest level in three decades.

Powell has to secure the post-pandemic normalisation of monetary policy when President Joe Biden’s stimulus packages are driving demand at a frenetic rate relative to supply and the economy is plagued by bottlenecks.