Personal and corporate financials are good, 7 interest rate hikes can be absorbed. Federal Reserve Chairman Jerome Powell © AFP=News1
Reporter Shin Ki-rim = Federal Reserve Chairman Jerome Powell dismissed the possibility of a recession next year and emphasized the strength of the US economy.
Fed Chairman Powell made the remarks during a briefing after the Federal Open Market Committee meeting on the 16th.
The FOMC raised the benchmark interest rate for the first time in more than three years since December 2018, and Chairman Powell repeated twice that the economy is very strong, noting that job demand is very strong.
He also dismissed the possibility that the United States would fall into a recession. He said the odds of going into a recession within the next year were not particularly high.
The good financial situation for individuals and businesses could help absorb the Feds rate hike, Powell said.
But he also appreciates inflation as strong, he said, and could face significant challenges, especially if he can manage to keep up with rising costs of necessities.
The Russian invasion of Ukraine could also cause trade and financial market volatility, damaging the US economy, Powell added.
