On Wednesday, Federal Reserve chair Jerome Powell announced a .75% rate hike in an attempt to stave off further inflation.

The Federal Reserve released a statement explaining the move, and preparing consumers for the possibility of more rate hikes ahead. They were sure to sandwich in a little “Putin’s Price Hike” talk to boot.

Recent indicators of spending and production have softened. Nonetheless, job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.

Russia’s war against Ukraine is causing tremendous human and economic hardship. The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation risks.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 2-1/4 to 2-1/2 percent and anticipates that ongoing increases in the target range will be appropriate. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve’s Balance Sheet that were issued in May. The Committee is strongly committed to returning inflation to its 2 percent objective.

While the Biden administration is quick to invoke Putin when it comes to the sagging economy, the word they refuse to land on is the one word on everyone’s mind these days…recession. They have even gone so far as to change the definition of “recession” at the White House, so that it conveniently avoids meaning what it is supposed to mean.

During the Q&A session following the announcement, Powell did utter the unutterable, but only to tell us that he is sort of, maybe, possibly convinced that he might not think we’re really in kind of a recession.

"We're not trying to have a recession. We don't think we have to. … I think it's important that we address this now. … I do not think the U.S. is currently in a recession.'' — Fed chair Jerome Powell

— Christopher Keating (@chrispkeating) July 27, 2022

“We’re not trying to have a recession”?

Not a reassuring statement from the man whose job is to reassure consumers and lenders. These look like the words of a man who is worried his nose is about to start growing rapidly.