US Fed chair admits recession a ‘possibility’ after rate hikes

22/6/2022 11:00:00 PM

US Fed chair admits recession a ‘possibility’ after rate hikes

Us İnflation, Us Federal Reserve

US Fed chair admits recession a ‘possibility’ after rate hikes

WASHINGTON, June 22 — The US economy remains strong but a series of aggressive rate hikes meant to cool soaring inflation could eventually trigger a recession, Federal Reserve...

Powell, whose testimony before senators was closely watched by investors and analysts, also said the world’s largest economy faces an “uncertain” global environment and could see further inflation “surprises.”But when peppered with questions about the prospect of a recession, Powell admitted it could not be ruled out.

In his opening remarks, Powell insisted the US economy “is very strong and well positioned to handle tighter monetary policy.”The Fed is facing intense criticism that it was too slow to react to the changing economy, which benefited from a flood of federal government stimulus.

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for the latest news you need to know.for the latest news you need to know.A WASHINGTON (June 21): US existing home sales tumbled to a two-year low in May as prices jumped to a record high — topping the US$400,000 mark for the first time — and mortgage rates increased further, pushing out entry-level buyers from the market.for the latest news you need to know.

Wednesday, 22 Jun 2022 11:23 PM MYT WASHINGTON, June 22 — The US economy remains strong but a series of aggressive rate hikes meant to cool soaring inflation could eventually trigger a recession, Federal Reserve Chair Jerome Powell cautioned today. Powell, whose testimony before senators was closely watched by investors and analysts, also said the world’s largest economy faces an “uncertain” global environment and could see further inflation “surprises. Powell, whose testimony before senators was closely watched by investors and analysts, also said the world’s largest economy faces an “uncertain” global environment and could see further inflation “surprises.” The Fed chair again stressed that the US central bank understands the hardship caused by rising prices and is committed to bringing down inflation, which has reached a 40-year high. "Existing home sales should continue to slow over the course of the year as mortgage rates move higher," said David Berson, chief economist at Nationwide in Columbus, Ohio. Last week, the Fed announced the sharpest interest rate increase in nearly 30 years and promised more action to combat the price surge, with gas and food costs skyrocketing and millions of Americans struggling to make ends meet. Last week, the Fed announced the sharpest interest rate increase in nearly 30 years and promised more action to combat the price surge, with gas and food costs skyrocketing and millions of Americans struggling to make ends meet. But when peppered with questions about the prospect of a recession, Powell admitted it could not be ruled out. As the interview aired, state security forces were raiding a home he owns northeast of Beirut as part of a judge’s probe into alleged misconduct and corruption.

“It’s not our intended outcome at all, but it’s certainly a possibility,” he told the Senate Banking Committee. “It’s not our intended outcome at all, but it’s certainly a possibility,” he told the Senate Banking Committee.4% to a seasonally adjusted annual rate of 5. “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 two per cent inflation and still a strong labor market.” In his opening remarks, Powell insisted the US economy “is very strong and well positioned to handle tighter monetary policy.” In his opening remarks, Powell insisted the US economy “is very strong and well positioned to handle tighter monetary policy.” “Inflation has obviously surprised to the upside over the past year, and further surprises could be in store,” the Fed chief said in his semi-annual appearance before Congress. Economists polled by Reuters had forecast sales would decrease to a rate of 5. Policymakers “will need to be nimble” given that the economy “often evolves in unexpected ways,” he said. Policymakers “will need to be nimble” given that the economy “often evolves in unexpected ways,” he said. “We will have more than 11 billion that we can use.

The Fed is facing intense criticism that it was too slow to react to the changing economy, which benefited from a flood of federal government stimulus. Last week’s super-sized 0. Last week’s super-sized 0.0 million to 4.75-percentage-point increase in the benchmark lending rate was the third since March, taking the policy rate up a total of 1.5 points.5 points. Powell at the time said more such increases were likely in July.6% on a year-on-year basis last month. The statement contradicts the position of Lebanon’s deputy prime minister Saade Chami, who told Reuters he was “not seeing any benefits to keeping” banking secrecy in the country.

“I think it’s going to be very challenging. “I think it’s going to be very challenging. We’ve never said it was going to be easy or straightforward,” Powell said when asked about efforts to stave off recession. ‘Essential’ to curb inflation In addition to easing the financial strain on less-wealthy American families, the Fed chief said tamping down inflation was “essential. ‘Essential’ to curb inflation In addition to easing the financial strain on less-wealthy American families, the Fed chief said tamping down inflation was “essential.78%, according to data from mortgage finance agency Freddie Mac....

if we are to have a sustained period of strong labor market conditions that benefit all. The report joined housing starts, building permits and homebuilder sentiment in suggesting that the housing market was losing speed under the weight of higher borrowing costs.” The US economy recovered quickly from the Covid-19 pandemic, helped by robust consumer spending, and has continued to create jobs at a strong pace, averaging 408,000 in the past three months.” The US economy recovered quickly from the Covid-19 pandemic, helped by robust consumer spending, and has continued to create jobs at a strong pace, averaging 408,000 in the past three months. Unemployment is near a 50-year low. But the buoyant demand for homes, cars and other goods clashed with transportation and supply chain snarls in parts of the world where Covid-19 has remained a challenge. But the buoyant demand for homes, cars and other goods clashed with transportation and supply chain snarls in parts of the world where Covid-19 has remained a challenge.01 in May from 0. That fuelled inflation, which got dramatically worse after Russia invaded Ukraine in late February and Western nations imposed stiff sanctions on Moscow, sending food and fuel prices up at a blistering rate.

Powell said the fallout from the conflict “is creating additional upward pressure on inflation. Powell said the fallout from the conflict “is creating additional upward pressure on inflation.” In addition, “Covid-19-related lockdowns in China are likely to exacerbate ongoing supply chain disruptions. Fears of a recession have been mounting in the wake of the Fed's decision last week to raise its policy rate by three-quarters of a percentage point, its biggest hike since 1994.” But he noted that the issue is not unique to the United States.” But he noted that the issue is not unique to the United States. “Over the past year, inflation also increased rapidly in many foreign economies,” he said. In fact, many major central banks have joined the Fed in beginning to tighten monetary policy — with the notable exception of the Bank of Japan. In fact, many major central banks have joined the Fed in beginning to tighten monetary policy — with the notable exception of the Bank of Japan. The dollar fell against a basket of currencies.

Powell pointed to signs that rising rates are having an impact, as business investment slows and “activity in the housing sector looks to be softening, in part reflecting higher mortgage rates.” Average home loan rates jumped to 5.” Average home loan rates jumped to 5.23 per cent in May for a 30-year, fixed-rate mortgage, from 4. Its slowdown could help to bring housing supply and demand back into alignment and slow price growth.98 per cent in April, according to Freddie Mac, while the median price for homes topped US$400,000 (RM1.98 per cent in April, according to Freddie Mac, while the median price for homes topped US$400,000 (RM1.7 million) for the first time.

“The tightening in financial conditions that we have seen in recent months should continue to temper growth and help bring demand into better balance with supply,” Powell said. “The tightening in financial conditions that we have seen in recent months should continue to temper growth and help bring demand into better balance with supply,” Powell said. The US$250,000-US$500,000 price bracket accounted for 42. — AFP Advertisement .