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Federal Reserve Powell said the United States was at the height of the recession

Federal Reserve President Jerome Powell appeared before the House Finance Committee on Friday, June 23, 2022 in Washington. (AP Photo/Kevin Wolf)

HALE NUHOU OAN
NEW 7:15 AM PT – Thursday, June 30, 2022

Federal Reserve President Jerome Powell sent a alarming message about the state of the U.S. economy on President Joe Biden’s watch. He agreed that there would be no confirmation of the so -called “soft landing” and that it could be returned.

Speaking at the European Central Bank Forum in Portugal on Wednesday, Powell said he could not guarantee that the Federal Reserve would be able to restore growth when the labor market remains strong. That is, an increase in interest rates can increase unemployment.

The Fed official added that he was committed to using any tool to ensure the economy, although he acknowledged that it was a problem for the Fed to go too far and start making a return. His remarks came after the U.S. Central Bank raised interest rates in an attempt to curb inflation.

“We think there are ways for us to achieve a path to return to 2 percent growth while maintaining a strong labor market,” Powell said. “We think we can do that. That’s our goal. There’s no guarantee we can do that.

His comments come as the Consumer Confidence Index fell 4.5 points this week. Consumers expect economic growth to “weaken significantly” in the second half of this year. This fall was attributed to many factors such as rising commodity prices, supply chain problems and concerns about the Russia-Ukraine conflict.

“We’re committed to using our tools to minimize revenue growth,” Powell said. “The way to do it is to prolong the growth, to take care of the quality. Is there a problem that goes too far? Of course, there is a problem.”

Scientists say the U.S. crisis is likely to escalate into an economic crisis by 2023 or beyond. Now, Biden insists it can’t be returned, despite concerns by professionals.

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Federal Reserve Powell said the United States was at the height of the recession

Source link Federal Reserve Powell said the United States was at the height of the recession

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