The pace of economic growth has been slowing this year. Policymakers are telling the same hawkish story: The Fed will do what it takes to get inflation down even if it triggers a recession.
That is not much of a surprise since 2021 had the fastest yearly pace of growth in about 40 years (chart 1), and many of the tailwinds that supported that growth (federal government stimulus, low-interest rates that allowed for refinancing of debt, etc.) are no longer available.