US Fed chair admits recession a 'possibility' after rate hikes

US recession is 'certainly a possibility': Federal Reserve Chair Powell

Powell addressed the Senate Banking Committee Wednesday, a week after the Fed ordered the largest interest rate increase since 1994. The central bank is under growing pressure to combat inflation, which hit a four-decade high of 8.6% in May. 

US Fed chair admits recession a 'possibility' after rate hikes

The U.S. economy remains strong but a series of aggressive rate hikes meant to cool soaring inflation could eventually trigger a recession, Federal Reserve Chair Jerome Powell cautioned Wednesday.Powell, whose testimony before senators was closely watched by investors and analysts, also said the world's largest economy faces an "uncertain" global environment and could see further inflation "surprises."

Fed's Powell: committed to inflation fight, not trying to trigger recession

That steep rate hike path, designed to slow the economy, has sparked widespread concern about a recession and a weakening of labor markets, which Powell on Wednesday said were unsustainably hot.

Committed to inflation fight, not trying to trigger recession: Fed's Jerome Powell

"We are not trying to provoke, and I don't think we will need to provoke, a recession," Powell said at a hearing before the U.S. Senate Banking Committee, although he acknowledged that a recession was "certainly a possibility" and events in the last few months around the world had made it more difficult to reduce inflation without causing one.

US Fed chief says recession is 'certainly a possibility' - China.org.cn

'Certainly a possibility': Federal Reserve chair admits that interest rate hikes could trigger a recession

Sen. Elizabeth Warren on Wednesday told Federal Reserve Chair Jerome Powell directly that the central bank's recent decision to enact more aggressive interest rate hikes in an effort to combat inflation could push the U.S. economy "off a cliff"—and throw millions of people out of work—without reining in soaring prices."Inflation is like an illness and the medicine needs to be tailored to the specific problem, otherwise you could make things a lo…