US Fed chair Powell's message: Inflation fight may cause recession

'We have got to get inflation behind us. I wish there were a painless way to do that. There isn't'

Jerome Powell

Federal Reserve Chair Jerome Powell (File photo: Reuters)

The Federal Reserve delivered its bluntest reckoning on Wednesday of what it will take to finally tame painfully high inflation: Slower growth, higher unemployment and potentially a recession.

Speaking at a news conference, Chair Jerome Powell acknowledged what many economists have been saying for months: That the Fed’s goal of engineering a “soft landing” — in which it would manage to slow growth enough to curb inflation but not so much as to cause a recession — looks increasingly unlikely.

“The chances of a soft landing,” Powell said, “are likely to diminish” as the Fed steadily raises borrowing costs to slow the worst streak of inflation in four decades.

First Published: Sep 23 2022 | 12:45 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to