Or they are just trying to hide their desperation about the “inflation or recession” dilemma they imposed on themselves!
Federal Reserve Chairman, Jerome Powell, stated that the latest economic data showcases the resilience of the U.S. economy, eliminating recession forecasts. Despite predicting a slowdown in growth later this year, the Fed remains confident in the economy’s robustness. In response to inflation concerns, the central bank raised its interest rate target to 5.25 percent to 5.5 percent, the highest rate in decades, making it the eleventh rate hike since March 2022, which is why they are seeking to adjust their predictions to their hopes.
Powell emphasized a data-dependent approach in determining further policy adjustments (which practically means nothing unless somebody believes that, until now, the FED has drawn its monetary policy on political whim) and highlighted the ongoing challenge of returning inflation to the target of 2%. While optimistic about a potential “soft landing” scenario, Powell warned that achieving the desired inflation rate will be a long and gradual process. Of course it will!
