Powell says curbing inflation without recession still possible
. Many economists are skeptical that consumers would see the full benefit of a tax holiday on the 18.4-cent-a-gallon gas tax.
At Wednesday’s hearing, Sen. Elizabeth Warren, a Democrat from Massachusetts, challenged Powell’s rate hike plans and asked whether they would reduce gas or food prices, some of the highest-profile drivers of inflation. Powell acknowledged that they wouldn’t. Yet Warren and other Democrats argued that the Fed’s approach carries the risk of weakening the economy and heightening unemployment even as the war in Ukraine keeps gas and food prices high. Such a dynamic would resemble the
At a news conference last week, Powell suggested that a rate increase of either half or three-quarters of a point will be considered at the Fed’s next meeting in late July. Either one would exceed the quarter-point Fed hikes that have been typical in the past, and they reflect the central bank’s struggle to curb high inflation as quickly as possible.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Powell concedes Fed may trigger recession, calls soft landing 'very challenging'Federal Reserve Chairman Jerome Powell conceded that avoiding a recession will be difficult as the U.S. central bank hikes interest rates to tame inflation.
Read more »
Recession Warning: Fed Chair Jerome Powell Admits That Higher Rates Might Trigger a DownturnFederal Reserve Chairman Jerome Powell conceded on Wednesday that the Federal Reserve’s battle to bring down inflation could trigger a recession.
Read more »
Powell: Fed aiming to avoid recession amid inflation fightFederal Reserve Chair Jerome Powell sought to reassure the public that the Fed will raise interest rates high and fast enough to quell inflation, without tightening credit so much as to throttle the economy and cause a recession.
Read more »
Powell: Fed aiming to avoid recession amid inflation fightFederal Reserve Chair Jerome Powell sought to reassure the public that the Fed will raise interest rates high and fast enough to quell inflation, without tightening credit so much as to throttle the economy and cause a recession.
Read more »
Federal Reserve chairman Powell says recession 'a possibility' but not likelyFederal Reserve chairman Jerome Powell said Wednesday that the central bank is committed to regaining control over inflation, even as he acknowledged the Fed has little power to address its most visible symptoms at the gas pump or the supermarket.
Read more »
Powell says recession 'a possibility' but not likelyFederal Reserve chairman Jerome Powell vowed to bring inflation back down to 2%. Some lawmakers worry the Fed's efforts to control inflation could tip the economy into recession.
Read more »