“I don’t see a recession” in 2019, Powell said Thursday in an interview at the Economic Club of Washington, D.C. “The U.S. economy is solid. Powell stressed the Fed is “watching” the situation closely and monitoring potential cracks in the economy. Recessions are typically caused by inflation rising quickly and forcing the Fed to respond with high interest rates or some sort of bubble in markets. Trump has urged the Fed not to raise interest rates at all this year. The Fed has projected two more rate hikes, but Powell is now signaling the Fed will be “patient” on any further hikes.

Source: Washington Post January 10, 2019 18:38 UTC