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The Senator questioned Powell's willingness to crash the economy to address inflation, paralleling Paul Volcker's approach. Powell affirmed the Fed's commitment to do whatever it takes, yet the lack of action already speaks volumes. Investors doubt Powell's resolve, as a true commitment would have prompted market crashes. A crucial question raised was how to tackle inflation without triggering a recession, implying inevitable interest rate hikes and economic downturn. If inflation is to be fought, a recession is unavoidable.
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