Exness: Powell insisted on his anti inflation commitment and pointed out that recession is possible

　　2022 year 6 month 22 Japan ( Wednesday ), US Federal Reserve Chairman Powell said at a two-day congressional hearing that , After the Fed's interest rate hike to combat inflation has reached a certain level , Could lead to a recession . Powell also said , We do think it is absolutely necessary to reduce inflation .

　　01 Powell ： The central bank is firmly committed to reducing inflation

　　 Wednesday , Federal Reserve Chairman Jerome · Powell told members of Congress , The Federal Reserve is determined to reduce inflation and has the ability to achieve this goal .“ At the Fed , We understand the difficulties caused by high inflation . We are firmly committed to reducing inflation , We are moving quickly ,”

　　 In his speech to the Senate Banking Committee, the chairman of the Federal Reserve said .“ We have the tools we need , There is also the determination needed to restore price stability on behalf of American households and businesses .”

　　 Powell insisted that inflation was overheating , Need to come down .5 The consumer price index in January is higher than that in the past year 8.6%, by 1981 year 12 Highest level since .“ Over the next few months , We will look for convincing evidence that inflation is falling , And inflation rebounded to 2% Agreement ,” Powell said .“ We expect continued interest rate hikes to be appropriate ; The pace of these changes will continue to depend on incoming data and changing economic prospects .”

　　 Powell also said , The war in Ukraine and the blockade caused by the COVID-19 are exacerbating inflationary pressures . At the same time, Powell also said that the United States is not the only one facing the problem of inflation , Many global economies are also facing inflation difficulties .

　　02 Powell admitted that raising interest rates could lead to a recession

　　 At the hearing , Democratic Senator elizabethwarren warned Powell , Continued interest rate hikes may be possible without stopping inflation “ Plunge the economy into recession ”. “ You know what's worse than high inflation and low unemployment is a recession with high inflation and millions of people out of work , I want you to reconsider this before you push the economy over the cliff .”

　　 Powell also admitted that after the Fed's interest rate hike to combat inflation reached a certain level , Could lead to a recession .“ This is certainly a possibility ,” He said .“ This is not the result we want , But it must be a possibility , To be frank , Events around the world over the past few months have made it more difficult for us to achieve our desired goals , namely 2% Inflation and a strong labor market .” He added , To achieve “ soft landing ”, That is to say, in the absence of severe economic environment such as economic recession, we will tighten policies , It will be difficult .

　　 Powell's remarks on Wednesday highlighted the challenges facing the Fed . To slow economic growth 、 Cooling inflation , The Federal Reserve is starting to 20 century 80 The fastest pace of interest rate hike since the s .