Too good to be bad, too risky to be good: Economy has Fed in a fix

Financial markets and professional forecasters seem braced for the latter

US economy, Economy

Photo: Bloomberg

After playing catch-up with inflation through the past year in a policy shift made urgent by relentlessly rising prices, the US Federal Reserve now faces a judgment about whether the economy is strong to motor through even higher interest rates or is on the cusp of a crack-up.
Financial markets and professional forecasters seem braced for the latter. US investors from crypto rebels to index fund loyalists lost in excess of $8 trillion this year as markets wilted under the fastest Fed rate hikes in 40 years; bond markets seem convinced a recession is coming; economists, in surveys by Reuters and others, agree.
But that seemingly stressed environment is also sustaining unemployment rates that are at record lows for Latinos

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Dec 13 2022 | 12:10 PM IST

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