Powell spoke more candidly than before about the economic risks of hiking interest rates in order to reduce inflation.
U.S. inflation is showing signs of entering a more stubborn phase that will likely require drastic action by the Federal Reserve, a shift that has panicked financial markets and heightens the risks of a recession.
On a monthly basis, prices rose 0.1%, after a flat reading in July.
Diversity at the Federal Reserve is a “compelling explanation” for a bad economy, Masters implied.
“Do you know what’s worse than high prices and a strong economy? It is high prices and millions of people out of work," the senator said of the Fed's impending hike.
Federal Reserve Chair Jerome Powell delivered a stark message Friday: The Fed is determined to fight inflation with more sharp interest rate hikes, which will likely cause pain for Americans in the form of a weaker economy and job losses.
Defying anxiety about a possible recession and raging inflation, America’s employers added a surprising 528,000 jobs last month.
Consecutive quarters of falling GDP constitute one informal, though not definitive, indicator of a recession.
The Federal Reserve is under pressure to continue raising interest rates aggressively with inflation at a four-decade high, the job market strong and consumers still spending.
Surging prices for gas, food and rent catapulted U.S. inflation to a new four-decade peak in June.