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Five Things You Need to Know to Start Your Day

Jerome Powell on June 22.

Jerome Powell on June 22.

Photographer: Ting Shen/Bloomberg

Powell says recession risk is real. China’s got a housing problem. Sri Lanka’s economy has “completely collapsed.” Here’s what you need to know today.

Federal Reserve Chair Jerome Powell gave his most explicit acknowledgment to date that steep interest-rate hikes could tip the US economy into recession. Testifying before the Senate Banking Committee, Powell said the other risk was not being able to get inflation under control. Economists are increasingly flagging the likelihood of a downturn within the next two years. Powell told the hearing that officials “anticipate that ongoing rate increases will be appropriate” to cool the hottest price pressures in 40 years. Meanwhile inflation in the UK hit new 40-year high, with further gains expected. Here’s what Powell’s remarks did to US markets, and what we can expect to see in Asia today.