Rates are rising faster, than ever in history.
Forecasts, Published FED, Show, what politicians expect, that U.S. growth will slow this year to 0,2%. They predict, that growth will accelerate to 1,2% next year, but predict, that the unemployment rate will rise to 4,4%.
Forecasts do not show, that inflation will return to the bank's target level in 2% to 2025 of the year.
Mr. Powell said, what if you do less, this could lead to even more economic damage.
"Higher interest rates, slower growth and a softening labor market are all painful for the population., whom we serve, but they are not so painful, as an inability to restore price stability, and then having to go back and do it again in the future.". he said.
Many analysts predict a recession in the US next year, but remain hopeful, that it will be relatively soft, Noting, that household finances are in better shape, than during previous recessions.
But the war in Ukraine and concerns about energy supplies are raising risks., JP Morgan Chase Chief Executive Jamie Dimon warned at a congressional hearing on Wednesday.
"There's a chance — not a big chance — a small chance of a soft landing., there is a chance of an easy recession, chance of a more severe recession. And because of the war in Ukraine... and uncertainty, which causes in the global energy supply and food supply there is a chance, what could be worse", He said.. "I think, that politicians should be prepared for the worst.".
