Federal Reserve Chairman Jerome Powell is set to return to Capitol Hill on Thursday morning for the second of two days of testimony, this time before the House Financial Services Committee.
Before a Senate panel on Wednesday, Mr. Powell said the central bank’s battle against inflation could lead it to raise interest rates high enough to cause a recession. “It’s not our intended outcome at all, but it’s certainly a possibility,” Mr. Powell said before the Senate Banking Committee. “We are not trying to provoke and do not think we will need to provoke a recession, but we do think it’s absolutely essential” to bring down inflation, which is running at a 40-year high.
