Powell’s stark message: Inflation fight may cause recession

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WASHINGTON (AP) – The Federal Reserve delivered its bluntest reckoning Wednesday of what it will take to finally tame painfully high inflation: Slower growth, higher unemployment and potentially a recession.

Speaking at a news conference, Chair Jerome Powell acknowledged what many economists have been saying for months: That the Fed’s goal of engineering a “soft landing” – in which it would manage to slow growth enough to curb inflation but not so much as to trigger a recession – looks increasingly unlikely.

“The chances of a soft landing,” Powell said, “are likely to diminish” as the Fed steadily raises borrowing costs to slow the worst inflation in four decades.

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9/22/2022 7:21:56 AM (GMT -5:00)

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