By Laila Kearney NEW YORK (Reuters) -Oil prices fell by more than $2 a barrel on Thursday in volatile trading as investors weighed the risk that rising U.S. interest rates could trigger a recession and cut demand for fuel. Brent crude futures fell $2.26 cents, or 2%, to $109.48 by 1:04 p.m. ET (1704 GMT). U.S. West Texas Intermediate (WTI) crude futures were down $2.48, or 2.3%, at $103.71. U.S. Federal Reserve chief Jerome Powell said the central bank’s focus on curbing inflation was “unconditional” and the labor market was unsustainably strong, comments that stoked fears of more rate hikes. …