Financial TimesFinancial Times

Economists warn of deeper US downturn as Fed keeps up inflation fight

By Colby Smith

01 Nov 2022 · 3 min read

Editor's Note

Like Europe, the US is suffering from rampant inflation. To get prices under control, policymakers may end up increasing the likelihood of a deeper recession, the Financial Times reports.

When Federal Reserve officials last met to set US monetary policy, chair Jay Powell made it clear that a recession in the world’s largest economy could not be ruled out.

“No one knows whether this process will lead to a recession or if so, how significant that recession would be,” he said at the press conference after the Federal Open Market Committee’s gathering in September.

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