Fed Chair Jerome Powell Concedes Possibility That Higher Rates Cause a Recession

Federal Reserve Chairman Jerome Powell mentioned the central financial institution’s battle towards inflation could lead on it to lift rates of interest excessive sufficient to trigger an financial downturn.

“It’s certainly a possibility,” Mr. Powell mentioned Wednesday throughout the first of two days of congressional hearings. “We are not trying to provoke and do not think we will need to provoke a recession, but we do think it’s absolutely essential” to convey down inflation, which is running at a 40-year high.