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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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WATCH: Federal Reserve Chairman Jerome Powell speaks about the decision to raise its benchmark interest rate by three-quarters of a percentage point.Source: Bloomberg

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.