"Powell suggests credit stress may alter Fed's rate plans."
TL;DR
The private credit crunch resulting from three of the largest bank failures in U.S. history may be taking the Fed off the hook for more rate hikes, Fed Chair Jerome Powell suggested Friday. The bank failures and response from the financial sector may be hastening the U.S. economy toward a recession, which the Fed has been predicting since March. Further stress on financial markets is coming from the refusal so far of Congress to raise the debt ceiling, which could force a default on U.S. public debt. International economic conditions that facilitated low inflation over the past several decades may be changing, Powell noted Friday.
Topics:businessfinance#bank-failures#federal-reserve#finance#financial-sector#inflation#interest-rates
- Powell says credit crunch is doing the work of Fed’s rate hikes The Hill
- Fed Chair Powell says rates may not have to rise as much as expected to curb inflation CNBC
- Jerome Powell: Labor market slack likely to be increasingly important factor in inflation CNBC Television
- Bank of America says markets 'underestimate' the Fed's next move Yahoo Finance
- Fed's Powell Says Credit Stress May Limit Rate Hikes Bloomberg Television
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