Economics
Powell Sets Path to Restrain Economy and Stop Runaway Inflation
- Suggests avoiding recession may be outside of Fed’s control
- Fed chair: overarching message is commitment to cool prices
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Federal Reserve Chair Jerome Powell took a step toward assuming the mantle of inflation slayer Paul Volcker, all but acknowledging that reining in run-away price pressures may result in a recession.
Declaring that it’s essential to bring inflation down, Powell engineered the central bank’s biggest interest-rate increase since 1994 on Wednesday and held out the distinct possibility of another jumbo three-quarter percentage point increase in July.