Powell Walks Tightrope on Interest Rates and Stock Market

The Federal Reserve's Jerome Powell is facing pressure to maintain economic growth without sparking a stock market downturn, according to an article in the Financial Times. The central bank has been hiking interest rates to combat inflation, but some experts worry that further tightening could lead to a recession.

Andrew Bailey, Governor of the Bank of England, recently stated that 'we don't need to raise interest rates' based on OECD projections. However, this optimism is not universal, as some economists believe Powell will continue to prioritize inflation control over market stability.