Hope is not a strategy for avoiding a recession. Fed Chair Jerome Powell sparked recession fears on Wednesday during a panel discussion at the European Central Bank’s annual policy forum in Sintra, Portugal. In his comments, Powell repeated his hope that the Fed can achieve a soft landing, but said “the pathways have gotten narrower” and acknowledged there is no guarantee the Fed can achieve its aim without hurting the job market. Powell’s comments unsettled the markets a little, and no wonder. His resolve to quell inflation is evident; the consensus is that the Fed funds rate will increase another 75 basis points (bp) at the July FOMC meeting, totaling a 150-bp increase in a little over a month. What’s more, beneath the radar for now, quantitative tightening of $47 billion per month — which increases to $94 billion in September — is pulling money out of the system. Despite the prospect of higher rates, yields are dropping and bonds are once again looking like a “safe-haven” asset, perhaps taking the place of commodities, where prices are declining.
 Source: https://www.wcax.com/2022/06/29/powell-no-guarantee-fed-can-tame-inflation-spare-jobs/