Free Trial

Powell Makes Most Open Acknowledgement Yet On Possible Recession


A recession is "certainly a possibility" if interest rates rise too high too fast -- that's the most open acknowledgement yet from Powell that recession is a potential outcome on the horizon.

  • When asked last week whether the FOMC was trying to induce a recession to reduce inflation, he said that the "pathways" to get to a strong labor market and inflation back to target "have become much more challenging due to factors that are not under our control".
  • Similar to today's "not our intention" to cause recession, last week he said the FOMC was "not trying to induce a recession now". But last week he didn't say a recession outcome was "certainly a possibility".

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.