Powell Says US Recession Is 'Certainly a Possibility'

The video discusses the federal funds rate, emphasizing the need to raise rates above a neutral level to combat high inflation. The goal is to reduce inflation to 2% while maintaining a strong labor market. The speaker acknowledges the possibility of a recession if rates rise too quickly, but stresses the importance of flexibility based on incoming data. Recent global events have complicated achieving these economic goals.

What external factors have made achieving the inflation target more difficult?

What is the relationship between interest rates and the labor market as mentioned in the text?