Chair of the Federal Reserve Jay Powell has said a US recession is “certainly a possibility” and warned that avoiding a downturn largely depends on factors outside the Federal Reserve’s control.
Powell acknowledged it was now more challenging for the central bank to root out soaring inflation while maintaining a strong jobs market. He argued the US was sufficiently resilient to withstand tougher monetary policy without sliding into a downturn but acknowledged that outside factors, such as the war in Ukraine and China’s Covid-19 policy, could further complicate the outlook.
He said: “It’s not our intended outcome at all, but it’s certainly a possibility.”
