Jay Powell seeks to allay recession fears but warns of inflation surprises

Financial Tinmes/ Colby Smith/6-21-2022

photo of jerome powell deliver testimony before Congress

“Inflation has obviously surprised to the upside over the past year, and further surprises could be in store. We therefore will need to be nimble in responding to incoming data and the evolving outlook, and we will strive to avoid adding uncertainty in what is already an extraordinarily challenging and uncertain time.” – Jerome Powell, Senate testimony, 6/21/2022

USAGOLD note: Markets have sensed that the Fed may be just as clueless as everyone else on the future direction of inflation, recession, et al. The outlook from Mr. Powell, as captured in the two sentences immediately above, may have cemented that suspicion. By raising the specter of stagflation (recession + inflation), he may have just fanned the fires.

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