Federal Reserve Chairman Jerome Powell warned Thursday that getting inflation under control could cause some economic pain but remains his top priority.
Powell said he couldn’t promise a so-called soft landing for the economy as the Fed raises interest rates to tamp down price increases running near their fastest pace in more than 40 years.
“So a soft landing is, is really just getting back to 2% inflation while keeping the labor market strong. And it’s quite challenging to accomplish that right now, for a couple of reasons,” the central bank chief said in an interview with Marketplace.
He noted that with a tight labor market pushing up wages, avoiding a recession that often follows aggressive policy tightening will be a challenge.
“So it will be challenging, it won’t be easy. No one here thinks that it will be easy,” he said. “Nonetheless, we think there are pathways ... for us to get there.”
The remarks were published the same day the Senate overwhelmingly confirmed Powell for a second term, a move that came nearly seven months after President Joe Biden first submitted the nomination. https://www.cnbc.com/2022/05/12/powell-says-he-cant-guarantee-a-soft-landing-as-the-fed-looks-to-control-inflation.html
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Personally my short term approach will change from shorting the overvalued tech stocks to some bigger names, as i think that stocks still have a while more to drop. Longer term i am looking forward to starting to get into the market with some small buys with a view to DCA'ing, but that won't happen for a while
Also think the Fed seriously dropped the ball here, which is why i included the last paragraph
Submitted May 12, 2022 at 11:38PM by morelos555 https://ift.tt/8luQmkf
