US Economy Deals With Unusual Set Of Disruptions, Says Fed Chair Jerome PowellTweet
Jerome Powell, the Chair of the Federal Reserve said on Friday (23rd September) that the US economy is dealing with an "unusual set of disruptions." This was after the central bank hiked the rates by 75 basis points of rate hike yet another time on Wednesday.
During a Fed Listens event held in Washington, D.C. Powell said, "We continue to deal with an exceptionally unusual economic set of disruptions. As policymakers, we are committed to using our tools to help steer the economy through what has been a uniquely challenging period.”
He describes the current US economic situation with high inflation and low economic growth as "the new normal." The Fed chair says, "The insights you share in these events help us home in on the challenges and opportunities that are shaping what we might think of as the new normal of the American economy."
Although the Federal Reserve is acting with the prioritized goal of lowering inflation over economic growth, we cannot pretend to unsee the impending doom brought on by a possible recession in the US economy.
According to the central bank, the US economy will grow by 0.2% in 2022. Earlier in the year, they forecasted a growth of 1.7%. The central bank estimated the job growth in 2023 to be 1.7% in June, but they have lowered the number to 1.2% following the economic events of this year.
Consumer inflation increased by 8.3%, as seen in August. The annual consumer inflation peaked in June with a value of 9.1% but has now slowed down to a market estimate of 8.1%.