As of late, the Federal Reserve is strolling a knife’s edge.
Excessive inflation is forcing its hand, and to tame it, the Fed has returned to Quantitative Tightening, climbing charges by 0.25% and promising 6-7 extra hikes inside this 12 months.
But when the Fed hikes an excessive amount of too quick, it dangers driving the economic system — which has been slowing dramatically not too long ago — into recession.
A painful recession or persisting inflation. The Fed could very doubtless be pressured to allow one with a view to include the opposite.
If certainly confronted with that selection, which one will Jerome Powell decide?
For a solution to this very important but very difficult query, we’re fortunate to be joined by Jim Bianco of macro analysis agency Bianco Analysis.
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