Jerome Powell reiterated the Federal Reserve’s steadfast commitment to raising interest rates and shrinking its balance sheet. But investors are increasingly skeptical the central bank can stay the course in the face of a slowing economy. Hari Krishnan, the head of volatility strategies at SCT Capital Management, joins Real Vision’s Ash Bennington to talk about the Scylla of inflation, the Charybdis of recession, and the possibility the Fed has no way out of this dilemma. Krishnan notes that there are critical time-lag differentials between Fed actions to control inflation and Fed actions to stimulate growth. And that makes a sharper economic downturn more likely, even with a pause in the Fed’s tightening program, as fed funds futures markets are currently signaling. Recorded on June 27, 2022.