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Full Version: Powell says he can’t guarantee a ‘soft landing’ as the Fed looks to control inflation
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  • Fed Chairman Jerome Powell cautioned Thursday that getting inflation under control won’t be easy.
  • “Nonetheless, we think there are pathways ... for us to get there,” he said in an interview with Marketplace published Thursday.

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Federal Reserve Chairman Jerome Powell warned Thursday that getting inflation under control could cause some economic pain but remains his top priority.

Powell said he couldn’t promise a so-called soft landing for the economy as the Fed raises interest rates to tamp down price increases running near their fastest pace in more than 40 years.

“So a soft landing is, is really just getting back to 2% inflation while keeping the labor market strong. And it’s quite challenging to accomplish that right now, for a couple of reasons,” the central bank chief said in an interview with Marketplace.

He noted that with a tight labor market pushing up wages, avoiding a recession that often follows aggressive policy tightening will be a challenge.

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