Fed's path will not necessarily cause a recession
Fed needs to get inflation under control
Inflation is high, persistent and broad based
Getting inflation close to Fed's goal creates certainty that enables growth and supports maximum employment
Demand is strong and looks to remain robust
A number of pandemic-era inflation pressures will eventually settle
Rising borrowing rates will dampen investment levels and spending on interest-rate sensitive items like housing and cars
Barkin had some hawkish comments last week that were amplified but his path here is what several Fed members have been saying. They will get to neutral around year end, then decide on what to do next.
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Fed’s Barkin: When we get to neutral, we can decide if we have to put the brakes on
By 1 Min Read