Powell Sees Plausible Path to Soft Landing

Q: Are you concerned that high inflation will cause consumers to stop spending?

• A: The economy is doing fairly well; we see household spending and biz investment as fairly strong. It's a good time to be a worker. It's a strong economy. Nothing about it suggests that it's close to or vulnerable to a recession. But given global events, fading fiscal policy and higher rates, you could see slower activity vs last year.
• As I said, I think we have a good chance to restore price stability without a recession, without a severe downturn and without materially higher unemployment. No-one thinks this will be easy or straightforward, but there is a plausible path. There are a range of opinions, and that's only appropriate.