Fed Chairman Powell, the central bank of the United States, said in a forum on the 29th that not falling as expected would be more of an economic risk than a slowdown due to a significant rate hike. I gave my opinion.
Fed Chair Powell attended an economic forum held by the Central Bank of Europe in Portugal on the 29th.
In this, Chair Powell said that the Fed's unusually large rate hike has increased caution against a recession in the market, citing the large amount of household savings in the United States and the tendency to improve employment. I can bear it, "he said, saying that the economy will slow down but will not collapse significantly.
Powell said, "The slowdown in the economy is not the greatest risk, and the inability to restore price stability is a major mistake." He said that it would be an economic risk if prices did not fall as expected. rice field.
For this reason, Chair Powell has a policy of accelerating monetary tightening by prioritizing inflation control, but because of the remarkable rise in energy and food prices due to the situation in Ukraine, he said, "We have set a goal of controlling inflation while maintaining strong employment. There is no guarantee that it can be achieved, and the road is narrower. "