Powell said the possibility of decline in the US economy

Xinhua News Agency, Washington, June 22 (Reporter Xiong Maoling) Powell, chairman of the Federal Reserve Committee, said on the 22nd that the Fed is resolutely committed to lowering the inflation rate and is quickly taking action to restore prices. He also acknowledged that there is the possibility of decline in the US economy.

Powell attended the hearing of the US Congress Bank of China on the same day that the Fed realized that high inflation brought great difficulties to the public and paid great attention to the risk of high inflation. Due to the long -term goals of the inflation rate higher than 2%and the labor market seriously in short supply, the Federal Reserve raised interest rates at the past three monetary policy meetings. Last week, the Fed announced a 75 -basis point of interest rate hikes, which was the maximum rate hike since 1994.

Democratic Senator Elizabeth Wallen said at the hearing that the Fed's radical interest rate hikes did not help alleviate the impact of supply chain pushing for gasoline and food prices, but may lead to a significant increase in the number of unemployed people. She hopes that the Fed will consider carefully before "pushing the economy down the cliff".

When the parliamentarians asked too much about interest rate hikes and too fast, Powell said, "This is not the result of the Federal Reserve, but there is indeed such possibilities."

In the context of continuous high inflation and the Fed's accelerated interest rate hike, economists' concerns about the decline of the US economy are heating up. The Economist survey released by the Wall Street Journal showed that the interviewees believed that the possibility of economic recession in the next 12 months was 44%, which was much higher than the 28%of the April survey.

Former President of New York Federal Reserve Bank, Bill Daldley, published an article on Bloomberg on the 22nd that the US economy will "inevitably" have fallen into a recession in the next 12 to 18 months.

[Editor in charge: Wang Mengmeng]

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