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The Federal Reserve needs to stay the course to quell inflation that is proving persistent at a four-decade high.
He said on CNN that the central bank needs to take strong action.
He cast doubt on the likelihood of a soft landing for the US economy, saying it is very unlikely.
The Fed is expected to raise rates by another 75 basis-point this week, after hiking them by the most since 1994. They are expected to keep moving higher in the months to come.
Powell said that restoring price stability would be a bigger mistake than pushing the US into a recession.
When we have been in this situation before, there is a very high chance of a recession. When inflation has been high and our employment has been low, the recession has followed.
The consumer price index increased in June. In June, most of the goods and services in the basket increased at a higher rate than in May.
The US government can do more to control inflation, and Congress should raise taxes to do so, according to the director of the White House's National Economic Council.
Raising taxes right now will help battle inflation.
Taking tariffs on imports off, lowering pharmaceutical prices, improving energy policies, and lowering the budget deficit are some of the government measures that could be taken.
He said there was a lot that could be done to control inflation. If we continue with the policies we had in 2021, there will be a lot of pain later.
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