White House insists economy is strong as allies grow uneasy about Fed

September 14, 2022

But with Fed Chair Jerome H. Powell moving aggressively, the White House now faces the prospect that these efforts will prove too much and instead tip the economy into a recession. The White House strategy could backfire. The Fed’s economic forecasts also show the unemployment rate rising a bit as interest rates go up. So far, the Fed has brought rates back up to what’s considered “neutral” — not intended to slow or juice the economy. Inside the White House, many officials are resigned to the reality that there may be little they can do about the matter.