Jerome Powell, chair of the Federal Reserve, told reporters Wednesday during a press conference that he does not believe that the economy is heading toward stagflation amid speculation.
Powell criticized the speculation among market watchers that the economy was heading toward a period of stagflation marked by high inflation and low growth, pointing to growth in certain metrics in the last few quarters, low unemployment and decelerating inflation, according to remarks made at a press conference following the Federal Open Market Committee’s (FOMC) rate decision. The FOMC chose to keep the federal funds rate in a range of 5.25% and 5.50% on Wednesday, a 23-year high, despite persistent inflation. (RELATED: Companies Are Slashing Away At Debt As Surging Inflation Casts Shadow Over Interest Rate Cuts)
“GDP print has led some to start mentioning the term stagflation with respect to…
