Bloomberg op-ed states the Federal Reserve likely expects a recession

Posted 44 days ago


Bloomberg executive editor Robert Burgess wrote an op-ed Saturday warning that the Federal Reserve is acting as if it expects a recession.

"Well, that was quick. In just more than a week, US Federal Reserve Chair Jerome Powell has gone from expressing confidence that policy makers will be able to avoid pushing the economy into a recession while rapidly raising interest rates to control inflation to remarking, as he did on Thursday, that a downturn is out of the central bank’s control," Burgess wrote.

The article, titled "The Fed Sure Sounds as If It Expects a Recession", argues that Fed Chairman Jerome Powell’s "confidence that the economy can avoid a downturn has taken a beating in just more than a week."

Burgess cites Powell’s recent statements as evidence that the Fed expects an economic downturn in the near future.

"At a press conference on May 4, after the Fed raised its target rate for overnight loans between banks by half a percentage point in the biggest increase since 2000, Powell told reporters that ‘it’s a strong economy’ and nothing suggests ‘it’s close to or vulnerable to a recession.’ Contrast that with comments he made Thursday in an interview with Marketplace public radio, where he said, ‘The question whether we can execute a soft landing or not, it may actually de... (Read more)