Powell Says Fed Can Avert Recession But Task Getting Tougher
- Market pricing for hikes is roughly in line with Fed forecasts
- Says bringing down inflation is focus, not yield curve
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Federal Reserve Chair Jerome Powell said the US economy is in “strong shape” and the central bank can reduce inflation to 2% while maintaining a solid labor market, even though that task has become more challenging in recent months.
He also vowed to ensure rapid price increases don’t become entrenched, saying that “we will not allow a transition from a low inflation environment to a high inflation environment.”