The Bottom Line: A Determined Fed

The Bottom Line: A Determined Fed

September 19, 2022

Since Federal Reserve Chair Jerome Powell’s speech at Jackson Hole in late August, there has been a full slate of other Fed policymakers telling the same hawkish story: The Fed will do what it takes to get inflation down even if it triggers a recession. The Fed’s tool is to raise short-term interest rates until inflation falls. So the market question is, how much Fed action is needed to slow the economy enough to drop inflationary pressures?

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