Federal Reserve Chairman Jerome Powell arrives for the plenary of the International Monetary and Financial Committee (IMFC) assembly, throughout the World Bank/IMF Spring Meetings at the International Monetary Fund (IMF) headquarters in Washington, Friday, April 14, 2023.
Jose Luis Magana/AP
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Jose Luis Magana/AP
Federal Reserve Chairman Jerome Powell arrives for the plenary of the International Monetary and Financial Committee (IMFC) assembly, throughout the World Bank/IMF Spring Meetings at the International Monetary Fund (IMF) headquarters in Washington, Friday, April 14, 2023.
Jose Luis Magana/AP
WASHINGTON — Federal Reserve Chairperson Jerome Powell was tricked into an prolonged phone call in January with Russian pranksters posing as Ukrainian President Volodymyr Zelenskyy, throughout which Powell appeared to debate the financial impression of rate of interest hikes.
Videos of the phone call have been posted on social media. In one clip, Powell says a “recession is almost as likely as very slow growth” this 12 months. Powell has mentioned earlier than that the Fed’s fast sequence of fee hikes in the previous 12 months would sluggish the financial system and even probably trigger a recession.
A spokesperson for the Federal Reserve mentioned “the video appears to have been edited, and I cannot confirm it is accurate.”
“Chair Powell participated in a conversation in January with someone who misrepresented himself as the Ukrainian president,” the spokesperson mentioned. “It was a friendly conversation and took place in a context of our standing in support of the Ukrainian people in this challenging time. No sensitive or confidential information was discussed.”
The spokesperson wouldn’t say whether or not the call demonstrated that the Fed faces safety lapses or what steps can be taken to attempt to forestall it from occurring once more.
“The matter has been referred to appropriate law enforcement, and out of respect for their efforts we won’t be commenting further,” the spokesperson mentioned.
The phone call was reportedly carried out by a duo of longtime Russian pranksters, Vladimir Kutznetsov and Alexei Stolyarov, in line with Bloomberg News. The pair have beforehand tricked different world leaders into conversations underneath false pretenses, together with European Central Bank President Christine Lagarde earlier this 12 months and then-UK Foreign Secretary Boris Johnson in 2018.
The Powell incident has come to mild at a time when the Fed is underneath intense scrutiny over its rate of interest hikes, that are meant to chill the financial system and slow inflation. Yet if the Fed retains charges too excessive for too lengthy, a recession may outcome.