POWELL’S Recession Warning Shocks Americans: Fed’s Tough Moves Could Hurt Families
— Federal Reserve Chair Jerome Powell gave a blunt warning on Wednesday: If inflation isn’t stopped soon, the U.S. could slip into a recession. Powell said, “Aggressive interest rate hikes are necessary,” with inflation now at 6.8%—way above the Fed’s 2% goal. He admitted these steps could slow down the economy and might even cause it to shrink if not handled right.
The Fed has already raised rates three times this year and more hikes are likely coming soon. Prices keep rising because of supply chain problems, high energy costs, and strong consumer spending. Wall Street felt the impact fast — stocks dropped, especially in tech and retail, while bond yields jumped as investors braced for tougher times ahead.
Powell urged patience but warned that doing nothing would be worse: stubborn inflation and higher unemployment could stick around for years if action isn’t taken now. Experts disagree on whether these moves will cool prices or push America into a slump later this year or next year.
This warning is a turning point for U.S. economic policy and puts real pressure on leaders to get it right — fight inflation without causing a recession that would hit families, workers, and businesses across the country hard.
