Jerome Powell says the US economic future may depend on factors outside the Feds’ control.
According to Powell, a soft landing is uncertain for the US economy.
The US economy is likely headed for a recession by the end of 2023 to early 2024.
The US Federal Reserve chair, Jerome Powell, acknowledged that the country’s economic future may depend on factors outside the Feds’ control. While speaking to the press, Powell said he had thought the soft landing was a plausible outcome. After leaving interest rates unchanged, Powell expressed uncertainty about how the economic future of the United States will play out.
In a recently uploaded video on the Altcoin Daily crypto YouTube channel, the host noted that Powell’s statement on a looming recession and a soft landing is a concerning development. According to the host, it has been the Feds’ goal to raise interest rates, curb inflation, and achieve what is known as a soft landing.
The channel’s host described a soft landing as a situation where the Fed can raise interest rates just enough to slow the economy and reduce inflation without causing a recession. In the recent FOMC conference, Jerome hinted at the possibility of not achieving a soft landing. However, he assured listeners that the Fed will restore price stability, knowing that the public depends on them to do that. He also noted that restoring price stability is inevitable in achieving an ideal labor market.
According to the Altcoin Daily host, the Biden administration has been deceptive with its monetary policies over the years. The host recalled several instances when different individuals from the Biden economic circle assured the public about restoring the US economy. Despite the multiple promises, the US economy appears to be heading for a bad recession in 2024.
Jonathan Liang, an assistant manager at JP Morgan, thinks the US economy is likely headed for a recession by the end of 2023 to early 2024. According to him, the primary driving force behind that would be tightening credit conditions, as bank balance sheets, particularly among US regionals, remain flawed and still have to be repaired to revive bank lending.
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