Category: Stagflation

The Fed’s path to a soft landing of the economy is a ‘fanciful magic carpet trip’ as its inflation fight...

Federal Reserve Board Chair Jerome Powell. (AP Photo/Carolyn Kaster) The Fed’s targets of bringing down costs whereas avoiding a recession is a “fanciful magic carpet ride,” Ned Davis Research warned. The research firm pointed to the Fed’s delicate balancing act between these targets, calling it a “lose-lose scenario.” Even if the Fed drives the economy into a recession, inflation might simply rebound if demand rises,…

The Fed will hike rates too far and tip the global economy into a recession, survey of economists says

Fed Chairman Jerome Powell. Reuters/Joshua Roberts The Fed is predicted to hike rates too far and tip the global economy into a recession, based on Bloomberg’s survey of economists. Three-quarters see a US recession inside the subsequent two years, and two-thirds see a global recession in that very same timeframe. Economists additionally see the Fed lifting benchmark rates to 4.75%-5% by early 2023. The Fed…

The Fed took the punch bowl away when the party was already ‘pissed drunk’ and now a US recession is...

Federal Reserve Board Chair Jerome Powell speaks during a news conference following a two-day meeting of the Federal Open Market Committee (FOMC) in Washington, U.S., July 27, 2022. Elizabeth Frantz/Reuters The Federal Reserve acted too late to start battling inflation by raising rates, David Rosenberg said. It removed the punch bowl when everyone was already “pissed drunk,” the veteran economist said. The Fed’s “full steam…