Powell: Raising Interest Rates Could Lead to Recession

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    Image copyright: The Washington Post

    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.

    Twitchy

    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.

    New York Times

    Metaculus Prediction

    There's a 60% chance that the US will enter a recession by January 1, 2023, according to the Metaculus prediction community.

    Political split

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