Recession Talk Surges in Washington

“From Wall Street to Washington, whispers about a coming economic slump have risen to nearly a roar as the Federal Reserve ramps up its battle against the highest inflation in four decades,” Politico reports.

“Price spikes and the Fed’s aggressive interest rate hikes sent the benchmark S&P 500 stock index tumbling to its worst performance in the first half of the year since 1970. Consumer confidence has sunk to record lows. And economists are increasingly worried that a downturn will not only happen but happen soon — a danger underscored by one widely watched Fed growth tracker.”

“Fed Chair Jerome Powell has begun saying the quiet part out loud: The central bank is willing to tolerate a recession if it means getting inflation under control.”