Fed’s Powell says he does not think US economy is in a recession – By Megan Henney (FOX Business) / July 27, 2022
Jerome Powell: Strong labor market likely means US not in a recession
Federal Reserve Chairman Jerome Powell said Wednesday he does not believe the U.S. economy is in a recession, despite growing fears that the country’s central bank could trigger a downturn with its war on inflation.
“I do not think the U.S. is currently in a recession, and the reason is there are too many areas of the economy that are performing too well,” Powell said at the Fed’s post-meeting press conference in Washington.
“This is a very strong labor market. … It doesn’t make sense that the economy would be in a recession with this kind of thing happening.”
His comments came after policymakers voted unanimously to hike interest rates by 75 basis points for the second consecutive month, putting the federal funds target range between 2.25% to 2.50%, the highest since December 2019. The efforts to bring inflation under control carry risks, and a growing number of economists believe it will be difficult for the Fed to avoid a recession.
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