Fed Chair Powell Warns Inflation Risks Tilt Higher

Jerome Powell states the risk balance has shifted recently, emphasizing there is no risk-free policy path for the U.S. economy.

Summary

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Terms & Concepts
  • Inflation: The rate at which the general level of prices for goods and services rises, eroding purchasing power.
  • Risk Balance: An assessment by policymakers weighing economic risks such as inflation versus recession.
  • Risk-Free Policy Path: An economic policy approach that avoids adverse effects—Powell notes no such path currently exists.