The Fed Chairman Just Blew Up Biden's Narrative on the 'Putin Price Hike'
TownhallJUL 2022
The Spin
Republican narrative
First, Powell admitted that inflation was soaring before the Russian invasion of Ukraine, and now he's saying that the administration and Fed's attempts to lower prices and stop a recession could very well fall short on both. Americans aren't buying Biden's excuses anymore and Powell's most recent testimony only solidifies this.
Democratic narrative
With the war in Ukraine raising the cost of gas around the world and China's recent lockdown, increased inflation was inevitable. The Fed needs to cool the economy down by raising interest rates, even if it means risking a recession. This is the only way we'll be able to finally get back to a stable and sustainable economic growth.
Metaculus Prediction
There's a 60% chance that the US will enter a recession by January 1, 2023, according to the Metaculus prediction community.
