An increasing number of economists ¡ª including the Federal Reserve¡¯s own staff ¡ª are predicting the U.S. will escape a recession, though it¡¯ll be well into 2024 before anyone can be sure of it.
Fed Chair Jerome Powell says he expects the central bank to navigate a path where the U.S. economy expands with inflation rates falling back to the 2% target, though the task will be challenging.
On one side, a failure to act aggressively enough against price pressures could result in rebounding inflation that requires harsher moves later. There¡¯s also the risk that the lagged effects of what¡¯s already the most aggressive tightening in four decades could tip the economy into recession.
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