'I Don't Think That a Recession Is Inevitable'

Fed chief Powell testifies to Congress, and markets tick up
By Newser Editors,  Newser Staff
Posted Jun 23, 2022 3:05 PM CDT
'I Don't Think That a Recession Is Inevitable'
An NYSE sign is seen on the floor at the New York Stock Exchange in New York, Wednesday, June 15, 2022.   (AP Photo/Seth Wenig)

The markets had a seesaw day but ended in positive territory Thursday and remained on track for a rare thing of late—a winning week. The Dow rose 194 points to 30,677, the S&P 500 rose 35 points to 3,795, and the tech-heavy Nasdaq outpaced them both by rising 179 points to 11,232. The latter's gain was the only one above 1%. Wary investors continued to weigh inflation worries and the risk of a recession, notes CNBC. And the AP takes note of this line from Federal Reserve chief Jerome Powell in congressional testimony Thursday: “I don’t think that a recession is inevitable.”

However, Powell acknowledged that trying to rein in inflation without triggering a recession "has gotten more and more challenging.” Still, the market rose in the wake of his testimony before the House Financial Services Committee, notes the Wall Street Journal. Here is how Hani Redha of PineBridge Investments sums things up for the Journal: "Inflation is at the center of all this, but there is also fading growth, and interest rates are going up. All of that together is a horrible cocktail and you just need to step aside and wait for that to work itself out." (More stock market stories.)

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