Federal Reserve Chairman Jerome Powell — who recently won a second term from President Joe Biden despite spectacularly failing to prevent painful inflation — finally admitted his botched approach to controlling inflation could plunge America into a recession.
“It’s not our intended outcome at all, but it’s certainly a possibility, and frankly, the events of the last few months around the world have made it more difficult for us to achieve what we want, which is 2 percent inflation and still a strong labor market,” Powell told the U.S. Senate Banking Committee Wednesday. “Of course, we’re not trying to provoke and don’t think that we will need to provoke a recession. But we do think it’s absolutely essential that we restore price stability, really for the benefit of the labor market as much as anything else.”
Powell tried to hedge his bets, saying that “I don’t see the likelihood of a recession as particularly elevated right now,” and passed the buck, claiming “You should know that no one is very good at forecasting recessions very far out. No one’s been able to do that regularly.” (RELATED: SHEFFIELD: Fed’s Effort To Tame Inflation Is Too Little Too Late After Democrats’ Massive Spending Spree)