Fed Chair Powell says Federal Reserve staff are no longer predicting a recession

Fed Chair Jerome Powell answers questions from reporters after the central bank announced an additional 25 bps hike in July. For access to live and exclusive video from CNBC subscribe to CNBC PRO: » Subscribe to CNBC TV: » Subscribe to CNBC: Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. Connect with CNBC News Online Get the latest news: Follow CNBC on LinkedIn: Follow CNBC News on Facebook: Follow CNBC News on Twitter: Follow CNBC News on Instagram: #CNBC #CNBCTV ...(read more)

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Since taking over as the Federal Reserve Chair in 2018, Jerome Powell has been navigating the US economy through various challenges, including trade disputes, geopolitical tensions, and most recently, the COVID-19 pandemic. Powell's leadership and decision-making have come under close scrutiny, particularly during recessions and crises. However, with recent developments, it appears that the Fed staff is no longer forecasting a recession. The Federal Reserve staff plays a crucial role in predicting economic trends and providing valuable insights to guide monetary policy decisions. Over the years, their forecasts have been highly regarded and have often influenced the Fed's actions. In recent months, their assessments have taken a significant shift. In the wake of the COVID-19 outbreak, the US economy experienced an unprecedented contraction, leading some economists to predict a prolonged recession. However, the latest projections from the Fed staff indicate a more optimistic outlook. Despite the ongoing challenges, they are no longer forecasting a recession, suggesting a potential recovery in the near future. Several factors have contributed to this change in perception. First and foremost, the implementation of effective vaccine distribution plans has lifted hopes for a return to normalcy. As more and more people are getting vaccinated, consumer confidence is growing, resulting in increased spending and economic activity. This positive shift in sentiment is a significant factor behind the Fed staff's change in forecast. Additionally, the federal government's commitment to providing substantial fiscal stimulus has also played a critical role in mitigating the economic downturn. The passage of the American Rescue Plan Act, injecting trillions of dollars into the economy, has provided much-needed support to struggling households and businesses. This injection of funds, coupled with a successful vaccination drive, has bolstered the economy's resilience and created a more favorable environment for growth. Furthermore, the Federal Reserve's monetary policy has been instrumental in ensuring financial stability and supporting economic recovery. Under Powell's leadership, the central bank has maintained an accommodative stance, keeping interest rates near-zero and implementing various asset purchase programs. These measures have provided liquidity to financial markets, keeping borrowing costs low, and promoting investment. However, it is essential to approach these changing forecasts with caution. Uncertainties and risks still remain, and the path to complete recovery may encounter bumps along the way. The resurgence of new virus variants or delays in vaccine distribution could pose challenges to the optimistic projections. This is why Powell and the Fed remain vigilant in their monitoring and stand ready to adjust policies if necessary. Overall, the fact that the Federal Reserve staff is no longer forecasting a recession is a positive sign for the US economy. The combination of successful vaccination efforts, substantial fiscal stimulus, and accommodative monetary policy has provided a solid foundation for growth. While challenges persist, the overall outlook is encouraging. Powell's leadership during these tumultuous times has proved effective, and his ability to adapt and respond to changing circumstances has been instrumental in guiding the economy towards recovery. https://inflationprotection.org/fed-chair-powell-says-federal-reserve-staff-are-no-longer-predicting-a-recession/?feed_id=143445&_unique_id=652110f3777d6 #Inflation #Retirement #GoldIRA #Wealth #Investing #breakingnews #businessnews #cable #cablenews #ClosingBell #CNBC #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #stockmarket #stockmarketnews #Stocks #usnews #worldnews #RecessionNews #breakingnews #businessnews #cable #cablenews #ClosingBell #CNBC #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #stockmarket #stockmarketnews #Stocks #usnews #worldnews