Monday, August 25, 2025

Latest

Jerome Powell Hikes Rates 75 Basis Points, Doesn’t Believe Economy Is In A Recession

The Federal Reserve on Wednesday delivered on a much-anticipated 75 basis-point rate hike, whilst acknowledging the US economy is weakening from pandemic highs— but is not a recession!

With inflation at 40 year-highs, and spending and job production on the decline, Fed Chair Jerome Powell walked a very narrow tightrope today, putting all efforts into not saying the infamous “R-word.” But, panic over the state of the economy was certainly there, after FOMC members unanimously agreed to hike borrowing costs by 75 basis-points for the second consecutive time, bringing the overnight rate to a range between 2.25% and 2.5%.

In attempting to deliver a glimmer of hope, though, the FOMC did affirm that “job gains have been robust in recent months,” and blamed Vladimir Putin on the “upward pressure” on inflation and downward weight on the economy. (Absurdly, pure ignorance was given to the fact that inflation was soaring exponentially higher long before the conflict in Ukraine, but we digress.)

“I do not think the U.S. is currently in a recession and the reason is there are too many areas of the economy that are performing too well,” said Powell during a press conference. “This is a very strong labor market … it doesn’t make sense that the economy would be in a recession with this kind of thing happening.”

But, upcoming economic data will likely suggest otherwise. With preliminary GDP data slated for release on Thursday, economists polled by Dow Jones are forecasting a paltry expansion— if any expansion at all— in the second quarter, following a worrisome 1.6% decline in the first three months of 2022.

For reference, here is the textbook definition of a recession from the National Bureau of Economic Research: “a significant decline in economic activity that is spread across the economy and lasts more than a few months.”

But, with pesky inflation continuing to rear its ugly head, Powell said that another rate hike is on the table come the FOMC’s next meeting in September, and that the Fed won’t hesitate to deliver a larger move should it be deemed necessary. Welp, with that being said, we might not be in a recession right now, but we certainly will be!


Information for this briefing was found via the Federal Reserve. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

First Majestic Q2 Earnings: Another Record Quarter

Sandstorm Gold Fades Into Royal Gold Merger

Equinox Gold Q2 Earnings: Back On Track

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Costco Hot Dog and Soda Combo Still $1.50, And It Will Be “Forever”

It’s been documented that Jim Senegal, founder of Costco Wholesale Corp. (NASDAQ: COST), once told...

Thursday, September 29, 2022, 02:00:00 PM

US CPI Explodes Past Expectations, Lays Case for Massive Fed Rate Hike

Just when the myopic Fed was preparing to declare victory over the hottest inflation in...

Tuesday, September 13, 2022, 10:17:40 AM

Americans’ Inflation Expectations Fall to Lowest Since April 2021

With the latest University of Michigan consumer survey published on Friday, all eyes were on...

Saturday, January 14, 2023, 01:31:00 PM

Bank Of Canada Unexpectedly Hikes Key Rate By Full Percentage Point

In a surprising turn of events, the Bank of Canada decided to raise its interest...

Wednesday, July 13, 2022, 11:44:00 AM

US Federal Reserve To Lapse Nearly all Covid-19 Emergency Credit Facilities

Now that it has nearly been a year since the Covid-19 pandemic decimated US financial...

Wednesday, March 10, 2021, 10:33:00 AM