US Federal Reserve chairman Jerome Powell holds a news conference in Washington after the Fed decided to raise interest rates by three-quarters of a percentage point. Photo: EPA-EFE
US Federal Reserve chairman Jerome Powell holds a news conference in Washington after the Fed decided to raise interest rates by three-quarters of a percentage point. Photo: EPA-EFE
Clara Cheong
Opinion

Opinion

Macroscope by Clara Cheong

Can a hawkish Fed balance the risks and avoid a US recession amid its aggressive rate increases?

  • The latest meeting suggests there are no doves left as the Fed signals an accelerated path of rate rises to fight a hot summer of inflation
  • But, with a cooling housing market and strong dollar among factors set to slow growth, an overly hawkish Fed could slow demand and even spark a recession

Clara Cheong
Clara Cheong

Updated: 2:41am, 18 Jun, 2022

Why you can trust SCMP
US Federal Reserve chairman Jerome Powell holds a news conference in Washington after the Fed decided to raise interest rates by three-quarters of a percentage point. Photo: EPA-EFE
US Federal Reserve chairman Jerome Powell holds a news conference in Washington after the Fed decided to raise interest rates by three-quarters of a percentage point. Photo: EPA-EFE
READ FULL ARTICLE