After raising interest rates again yesterday, the Federal Reserve now faces a tough decision.
Any further increases in that benchmark rate, which is now at its highest level in 22 years, would heighten the risk of a recession, according to these economists.
But other experts — the hawks — point out that annual inflation remains at 3 percent, above the level the Fed prefers.
Unless Fed officials add at least one more interest rate increase in coming months, consumers and business may become accustomed to high inflation, making it all the harder to eliminate.
For now, Jerome Powell, the Fed chair, and his colleagues are choosing not to take a side.
Persons:
Jerome Powell, “ We’ve, ” Powell, ”
Organizations:
Federal Reserve
Locations:
U.S