Powell warns of ‘some pain’ ahead as the Fed fights to bring down inflation

[Guest]

Powell warns of 'some pain' ahead as the Fed fights to bring down inflation

WWW.CNBC.COM

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Fed Chairman Jerome Powell warned that he expects the central bank to continue raising rates in a way that will cause "some pain" to the economy.

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“While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” he said in prepared remarks. “These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.”

 

Stocks fell after the Powell speech, with the Dow Jones Industrial Average off more than 500 points. Treasury yields were off their highs of the session.

The remarks come amid signs that inflation may have peaked but is not showing any marked signs of decline.

Buying up more SPY on these slides 

[CayceG]

So the Fed is creating a recession to decrease pressure on Capital owners. 

[Ghost_MH]

8 minutes ago, CayceG said:

So the Fed is creating a recession to decrease pressure on Capital owners. 

 

Just need to raise unemployment rates to decrease wages.