Fed raises rates half a percentage point, its largest increase since 2000.
nytimesAUG 2022
The Fed's goal to dampen inflation without inducing a recession - known as a "soft-landing" - is a pipe dream. The central bank waited too long to start cooling inflation and is now overcompensating, which runs the risk of slowing the economy so much that it shrinks.
There is broad consensus among Fed bankers and economists that it's time for some quantitative tightening to rein in inflation, and the market is breathing a sigh of relief after the latest announcement. While the process of bringing down inflation is not pain-free, the economy is strong and a recession isn't likely.
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