Powell Sees U.S. Economy Still Solid

Federal Reserve Chairman Jerome Powell said at the European Central Bank's annual meeting that the U.S. economy remains healthy enough to cope with tightening credit conditions and a rise in unemployment while avoiding a recession. The Fed will try to avoid the shocks that the economy will experience when they transition to high inflation occurs. However, the longer inflation persists, it could make a soft landing more challenging. The remarks once again showed Powell's determination to do whatever it takes to fight inflation, and the market's worries about the economic outlook have driven the safe-haven demand for the dollar.