ToplineAfter a year’s worth of warnings around a nationwide economic downturn, Federal Reserve Chair Jerome Powell on Wednesday said the central bank’s staff are no longer forecasting a recession, as the Fed aims to stem inflation by raising interest rates without causing an economic downturn. Federal Reserve Chair Jerome Powell said the Fed is no longer predicting a recession. Getty ImagesKey FactsPowell said in a press conference the “resiliency in the economy” recently prompted Fed staff to downgrade their forecast, which Powell noted is “independent” of the predictions made by members of the Fed’s rate-setting committee. The Fed also paused interest rate increases last month for the first time in more than a year amid signs stubbornly high inflation was continuing to cool, though Powell indicated at the time more rate increases could follow. Further ReadingFed Hikes Interest Rates By 25 Basis Points To Highest Level Since 2001 (Forbes)Inflation Slides To 2-Year Low—But Price Increases Stay Sticky (Forbes)Are Layoffs Slowing Down?

Source: Forbes July 27, 2023 07:05 UTC