{"id":1525952,"date":"2022-06-22T15:04:57","date_gmt":"2022-06-22T19:04:57","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1525952"},"modified":"2022-06-22T15:05:26","modified_gmt":"2022-06-22T19:05:26","slug":"fed-chair-jerome-powell-says-recession-is-a-possibility-but-remains-strongly-committed-to-killing-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-chair-jerome-powell-says-recession-is-a-possibility-but-remains-strongly-committed-to-killing-inflation\/","title":{"rendered":"Fed Chair Jerome Powell Says Recession Is A \u2018Possibility\u2019 But Remains \u2018Strongly Committed\u2019 To Killing Inflation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffed-chair-jerome-powell-says-recession-is-a-possibility-but-remains-strongly-committed-to-killing-inflation%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1525952&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><a href=\"http:\/\/dailywire.com\/topic\/federal\/reserve\">Federal Reserve<\/a> Chair Jerome Powell testified before members of the Senate on Wednesday that the central bank remains \u201cstrongly committed\u201d to combating record-high <a href=\"http:\/\/dailywire.com\/topic\/inflation\">inflation<\/a>, although there is a \u201cpossibility\u201d of a <a href=\"http:\/\/dailywire.com\/topic\/recession\">recession<\/a>.<\/p>\n<p>Last week, the Fed <a href=\"https:\/\/www.dailywire.com\/news\/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades\">increased interest rates<\/a> by 0.75% \u2014 the largest incremental rate hike since 1994. The central bank already <a href=\"https:\/\/www.dailywire.com\/news\/the-fed-jacks-key-rate-up-half-point-as-inflation-surges\">hiked rates<\/a> by 0.5% in May \u2014 the largest such increase since 2000 \u2014 after a 0.25% rate hike from near-zero levels in March. Interest rates are now at 1.5% to 1.75%, with <a href=\"https:\/\/www.dailywire.com\/news\/expect-higher-unemployment-as-federal-reserve-tackles-inflation-warns-top-policymaker\">more increases likely<\/a> on the way.<\/p>\n<p>\u201cAt the Fed, we understand the hardship high inflation is causing. We are strongly committed to bringing inflation back down, and we are moving expeditiously to do so,\u201d Powell <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/testimony\/powell20220622a.htm\">told<\/a> the Senate Banking, Housing, and Urban Affairs Committee. \u201cWe have both the tools we need and the resolve it will take to restore price stability on behalf of American families and businesses. It is essential that we bring inflation down if we are to have a sustained period of strong labor market conditions that benefit all.\u201d<\/p>\n<p>While the Consumer Price Index (CPI) increased <a href=\"https:\/\/www.dailywire.com\/news\/inflation-reaches-8-6-setting-new-four-decade-high\">8.6%<\/a> year-over-year as of May, the Producer Price Index (PPI) \u2014 which tracks <a href=\"http:\/\/dailywire.com\/topic\/inflation\">inflation<\/a> for businesses \u2014 increased <a href=\"https:\/\/www.dailywire.com\/news\/inflation-for-businesses-continues-at-double-digit-pace\">10.8%<\/a> over the same period, according to two recent reports from the U.S. Bureau of Labor Statistics.<\/p>\n<p>During the hearing, Sen. Elizabeth Warren (D-MA) noted that the rate hikes could \u201ctip this economy into recession\u201d without stopping inflation, according to <a href=\"https:\/\/www.cnbc.com\/2022\/06\/22\/powell-tells-congress-the-fed-is-strongly-committed-to-bringing-inflation-down.html\">CNBC<\/a>. Rate hikes are meant to curb rising price levels, but they also have the effect of increasing borrowing costs and thereby dampening economic activity.<\/p>\n<p>\u201cYou know what\u2019s worse than high inflation and low unemployment is high inflation and a recession with millions of people out of work, and I hope you\u2019ll reconsider that before you drive the economy off a cliff,\u201d Warren said.<\/p>\n<p>The Federal Open Market Committee, which handles the Fed\u2019s monetary policy interventions, has a dual mandate to maximize employment while keeping inflation low. Historically, there has been a tradeoff between the two goals, with low unemployment associated with higher inflation and high inflation associated with lower unemployment.<\/p>\n<p>\u201cIt\u2019s certainly a possibility,\u201d Powell told Warren. \u201cIt\u2019s not our intended outcome at all, but it\u2019s certainly a possibility, and frankly the events of the last few months around the world have made it more difficult for us to achieve what we want, which is 2% inflation and still a strong labor market.\u201d<\/p>\n<p>Although rate hikes pose new risks, high inflation is creating hesitance among consumers and other economic actors. When questioned by a Harvard <a href=\"https:\/\/www.dailywire.com\/news\/poll-95-of-voters-say-inflation-is-somewhat-or-very-serious\">survey<\/a> about rising price levels, 95% of respondents said that inflation is \u201cvery serious\u201d or \u201csomewhat serious.\u201d A plurality \u2014 47% \u2014 said that the Biden administration is responsible.<\/p>\n<p>President Biden, however, has <a href=\"https:\/\/www.dailywire.com\/news\/biden-claims-inflation-is-worse-everywhere-but-here-thats-not-even-close-to-true\">argued<\/a> that \u201cPutin\u2019s Price Hike\u201d \u2014 a reference to the Russian invasion of Ukraine and its role in soaring global energy costs \u2014 is behind the inflationary pressures.<\/p>\n<p>\u201cHigh gas prices at the pump, energy, and food prices accounted for around half of the monthly price increases, and gas pump prices are up by $2 a gallon in many places since Russian troops began to threaten Ukraine,\u201d Biden said. \u201cEven as we continue our work to defend freedom in Ukraine, we must do more \u2014 and quickly \u2014 to get prices down here in the United States.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve Chair Jerome Powell testified before members of the Senate on Wednesday that the central bank remains \u201cstrongly committed\u201d to combating record-high inflation, although there is a \u201cpossibility\u201d of a recession. Last week, the Fed increased interest rates by 0.75% \u2014 the largest incremental rate hike since 1994. The central bank already hiked rates &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1525981,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1525952","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1525952","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1525952"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1525952\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1525981"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1525952"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1525952"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1525952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}