WASHINGTON: Jerome Powell, who chairs the Federal Reserve, says there’s “no guarantee the central bank can tame runaway inflation without hurting the job market.
Speaking at a European Central Bank forum in Sintra, Portugal, Powell repeated his hope that the Fed can achieve a so-called soft landing raising interest rates just enough to slow the economy and rein in surging consumer prices without causing a recession and sharply raising the unemployment rate.”We believe we can do that. That is our aim, he said.
But the Russian invasion of Ukraine, he said, had made the job more difficult by disrupting commerce and driving up the price of food, energy and chemicals.”It’s gotten harder, Powell said. “The pathways have gotten narrower.
Christine Lagarde, president of the European Central Bank, also pointed to the “major impact” of energy shocks, which are rippling worldwide but felt acutely in Europe because of its reliance on Russian oil and natural gas. She also pointed to Europe’s proximity to the war in Ukraine and said “energy was vastly underestimated” in the bank’s assessment of inflation.
The ECB and the Fed were slow to recognize the inflation threat that emerged just over a year ago. They believed that rising prices were the temporary result of supply-chain snags as the economy bounced back with unexpected speed from 2020’s brief but devastating coronavirus recession. But inflation kept accelerating.
The Fed raised its short-term benchmark rate in March and May and appeared to be ready for another half-percentage-point increase at its meeting June 14-15.Then, the Labor Department reported that consumer prices had shot up 8.6% in May from a year earlier the biggest jump since 1981. And the Fed responded by pushing the rate up by three-quarters of a percentage point its biggest hike since 1994.
Increasingly, economists worry that higher rates could push the economy into a recession.But Powell pointed to a strong labor market unemployment is near a half-century low at 3.6% and said most households and businesses have healthy savings.”Overall,″ he said, “the U.S. economy is well-positioned to withstand tighter monetary policy.″Lagarde said that also is true in Europe.
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Not as long as the loose canon remains in the White House.
This runaway inflation was Orchestrate and fabricated by the treasonous socialist Democrat Party and their puppet president.
This Treasonous, dishonest, destructive, Socialist Democrat Party’s objective is to lie, cheat and steal in order to take total control of the American people, by restricting U.S. oil production, increase Taxes and the cost of everything and bring American commerce and economy to its knees and to promote Socialism.
Then access power and retain it by any means available –
no matter the costs to the people, the government or the nation.
This treasonous, hateful, destructive, immoral, socialist Democrat Party and their corrupt, demented puppet president has become our country’s most destructive and deadliest ENEMY!
AMEN!!!!
IF he can’t do his job, WHY DOES HE HAVE IT!?
Yeah. And if you can’t see how so much of our problems now are because of Bidum-dum’s war on fossil fuels and our previous energy independence, where is your head?
Fuel is the blood of any civilization. You bring the lifeblood of the Country back to a level we had two years ago, everything else will start to stabilize. That means stop with your policies, and canceling of policies, that prevent us from being the producers we showed we were capable of being.
I may have only been alive for 66 years, but I saw this as a given truth when Carter got defeated by Reagan, and soon the gas lines and shortages of the late 70’s seemed to disappear.
Sure, someday, a group of very clever humans will discover a way to solve our overall energy problem without having to resort to fossil fuels, I am very optimistic about that. Despite the dumbing down of the coming generations by Progressive Indoctrination starting from K through 12.
But I haven’t read anything close to being viable, or within our grasp yet. Nothing.
And besides fuel, how about the thousands of products that are also becoming hard to replace because they are also by-products of a barrel of oil? Just look around any room you’re in now.
Get over yourselves, Lib Progs, you don’t have answers, only continued hardships for the average taxpaying citizen who are tired of your “let them buy an EV” attitude.
Along with Rootin and tootin Back firing Carbine Kamala whose shotgun approach to simple solutions leaves more collateral damaged dead on arrival solutions than any actual hit targets.
There are no guarantees of good outcomes when elected or unelected government people in power refuse to follow and ignore the laws written on the books for the protection of THE PEOPLE. The same applies when woke economists and Presidents ignore the basic economic laws of supply and demand and use things like Strategic oil reserves created to protect THE PEOPLE in times of war for political expediencies in times of peace of artificially lowering gas prices by temporarily raising supply and in disappearing 18 cent tax cuts right before the election, that they purposely raised the first days in office. If re-elected they will just go back with the power to keep the pain applied, and not only do nothing to re-establish the rise and supply production of oil that will lower our costs back to $2.00/gallon, but continue to restrict American production where the sky is the limit in price. Temporarily eating dirty Russian oil off Putin’s plate and enriching him with war making capabilities is all Joe has accomplished. All the Fed can do is have us payout in permanent debilitating inflation WITH INTEREST in increments later, that which the real world market demands up front and now. Given a choice between an unpopular abused President who kept the machines and economic trains economically running on time and an incompetent fool who ran it off the tracks, we obviously elected the wrong man who first allowed the train to get robbed.
Biden wasn’t elected. HE WAS Installed!