Powell: ‘Soft’ economic landing may be out of Fed’s control

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell, fresh off winning Senate confirmation for a second four-year term, for the first time Thursday acknowledged that high inflation and economic weakness overseas could thwart his efforts to avoid a recession. Previously, Powell has sought to portray the Fed’s efforts to tighten interest rates as consistent with a so-called “soft landing” for the economy. In that scenario, the Fed would tighten borrowing costs enough to cool the economy and bring down inflation, without going so far as to tip the economy into recession. But on Thursday he acknowledged such a soft landing may be out of the Fed’s control.