(The Center Square) – Federal Reserve Chair Jerome Powell said he does not think the U.S. economy is in recession.
At a news conference Wednesday, Powell announced the Fed’s decision to hike interest rates another 0.75 percentage points and that further interest rate hikes may be required.
“Today, the FOMC raised its policy interest rate by three-quarters of a percentage point,” Powell said. “[The FOMC] anticipates that ongoing increases in the target range for the federal funds rate will be appropriate.”
With inflation at 9.1%, the highest since 1981, the Fed’s aggressive attempt at bringing down inflation has led some to worry about the possibility of a recession. Powell said Wednesday does not think that the economy is currently experiencing a recession.
“This is a very strong labor market,” Powell said. “2.7 million people hired in the first half of the year, it doesn’t make sense that the economy would be in recession with this kind of thing happening. I don’t think the U.S. economy is in a recession right now.”
Some, however, disagree and say the economy is in a recession.
“We are in a recession, and it’s going to get worse.” FOX Business host Larry Kudlow said.
The U.S. Bureau of Economic Analysis is expected to release its latest quarterly GDP data Thursday. GDP shrank in the first quarter, and a second quarterly report showing a decline would indicate the U.S. is in a recession.