Inflation in the United States remains high, and Federal Reserve Chairman Jerome Powell said recently that he will strive to bring inflation down from the current 8.6% to the target level of 2%.
However, how much does the bureau need to raise interest rates to achieve the desired result?
Can the economy be guided to a soft landing, or will a recession be needed to change the course of inflation?
This is everyone's question.
A series of inflation data released in recent days showed no sign of slowing down in U.S. inflation.
(Xinhua News Agency)
According to the CME Fed Observation Tool of the Chicago Mercantile Exchange, by the end of September, the probability of the target range of the federal funds rate rising to 2.75% to 3% and above is 78.3%, which means that in the next three interest rate meetings, the Fed will Or a total of 2% interest rate hikes, that is, two 0.75% and one 0.5%.
High inflation and aggressive Fed tightening are worrying economists: “It’s not a regular runway, it’s a tightrope landing, and the wind is howling.” Financial Times with the University of Chicago Booth School of Business According to the survey, nearly 70% of well-known economists in academia predict that the U.S. economy will enter a recession next year.
U.S. Treasury Secretary Janet Yellen said earlier that a U.S. recession "is not inevitable."
(Getty Images)
However, U.S. Treasury Secretary Janet Yellen said earlier at an event that she does not think a recession is imminent, although she did admit that growth will "absolutely" slow.
"Consumer spending is very strong, investment spending is solid," she said. "I know people are very nervous about inflation, and rightfully so, but there's nothing to suggest that a recession is brewing."
For details, please read the 322nd issue of "Hong Kong 01" e-Weekly Newsletter (June 20, 2022) "
Currency Illusion Disrupted U.S. Economic Recession Is Consensus
".
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