Federal Reserve: No Recession
Posted on 11/04/2023
Chair Jerome Powell says there will be no recession in the U.S. according to Federal Reserve staffers. “The answer is no,” he said when asked about a U.S. recession, after declaring that he didn’t want to answer the question. The Fed could tighten by US$ 95 billion per month in terms of asset runoffs. Powell said the pace of balance sheet runoff would not be reduced, in line with his comments on the perceived strength in the economy. Powell noted that higher rates are causing higher borrowing costs, and a near 8% mortgage rate. He expects that to dampen housing activity.
