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Supply Woes Raise Recession Risk as Fed Rejects Inflation Nuance

  • Powell has signaled determination to press on with rate hikes
  • Ukraine war, China lockdowns worsen global supply-chain snarl
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WATCH: Former Fed Governor Randy Kroszner discusses inflation and interest rates.Source: Bloomberg

Central bankers can’t drill for oil, grow more crops, build houses or repair global supply chains.

That means the only quick fix available to Federal Reserve Chair Jerome Powell and his colleagues for cooling the fastest inflation in four decades may be raising interest rates so much that they crash the economy into recession.