Fed’s Powell: Russia’s war on Ukraine will worsen inflation

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell warned that Russia’s invasion of Ukraine, which has already driven up oil prices, will likely further magnify the high inflation that has engulfed the U.S. economy. At the same time, Powell said he is committed to doing whatever it will take to slow inflation, underscoring the Fed’s high-risk challenge in raising interest rates enough to stem inflation without tipping the economy into another recession. The Fed chair, in his remarks to the Senate Banking Committee on his second day of semiannual testimony to Congress on interest rate policies, stressed his belief that the economy is strong enough to withstand higher borrowing costs.