(MENAFN) After the Federal Reserve raised rates by 75 basis points for the third time in a row on Wednesday, Chair Jerome Powell claimed on Friday that the American economy is experiencing a "unusual set of disruptions."
He declared during a Fed Listens gathering in Washington, D.C, "we continue to deal with an exceptionally unusual economic set of disruptions. As policymakers, we are committed to using our tools to help steer the economy through what has been a uniquely challenging period.”
The current context of record high inflation and slow economic growth, according to Powell, is "the new normal." Adding that "the insights you share in these events help us home in on the challenges and opportunities that are shaping what we might think of as the new normal of the American economy."
Although the Fed has placed a higher priority on reducing inflation than on promoting economic development, the possibility of a United States economic slump still exists.
In contrast to its earlier prediction of 1.7 percent growth issued in June, the central bank now projects that the American economy is going to expand by 0.2 percent this year. According to its most recent predictions, the growth prediction for upcoming year was also decreased to 1.2 percent from the prior anticipation of 1.7 percent.
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