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European Stocks Pare Declines as Powell Reassures on Inflation

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Powell Says US Economy Can Handle Tighter Fed Policy
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European stocks pared early declines as Federal Reserve Chair Jerome Powell said the central bank would keep raising rates to quell runaway inflation, calming worries about potential stagflation.

The Stoxx Europe 600 Index was down 0.5% at 3:31 p.m. in London after earlier sliding as much as 1.8% and snapping a three-day rebound on worries about a potential recession. In his semiannual testimony to the Senate Banking Committee on Wednesday, Powell said policy makers must be “nimble” as various shocks buffet the world’s largest economy.