Federal Reserve Chairman Jerome Powell sent an alarming message about the state of the US economy on President Joe Biden’s watch. He admitted there’s no guarantee for so-called “soft landing” and a recession is possible.
The messaging seems to be clear among economists within the Biden administration: don’t say recession. They appear to be reluctant to say a recession is looming, despite warning the economy is likely to slow down.
The US Central Bank has made yet another attempt to bring down record-high inflation, this time with the largest rate increase in 28 years. Fed chair Jerome Powell announced Wednesday that benchmark federal funds rate is going up by point 75 percent.
As expected by many, the Federal Reserve is undertaking the biggest interest rate increase since 1994. On Wednesday, Fed Chair Jerome Powell announced the Central Bank is raising interest rates by 0.75 percent, which is up to a range of 1.5 to 1.75percent.
The Biden administration is keeping its head in the ground as the US economy is on its way to catastrophe. At the White House and on corporate networks Tuesday, several of President Joe Biden’s economic advisors tried to downplay the severity of rampant inflation and chocked supply chain.
Federal Reserve Chairman Jerome Powell (R-D.C.) doubled down on the policy of raising interest rates in coming months which may hurt millions of Americans. In an interview Tuesday, the fed chair admitted higher borrowing costs may cause some “pain” to households and businesses.