As a result, they’re almost sure to leave their key interest rate unchanged when their meeting ends Wednesday.
Claudia Sahm, a former Fed economist, said she thinks a “soft landing,” in which the Fed manages to curb inflation without causing a recession, remains possible.
But she cautioned that inflation might stay higher for longer than the central bank expects.
Or, she suggested, the cumulative effects of the Fed's 11 rate hikes could ultimately tip the economy into recession.
“I expect we’ll need to hold rates at restrictive levels for some time,” said Susan Collins, president of the Federal Reserve Bank of Boston.
Persons:
they’re, Jerome Powell, Claudia Sahm, ” Sahm, “ They’re, ”, Christopher Waller, Powell, “, They're, Jose Torres, Susan Collins, Lorie Logan, William English
Organizations:
WASHINGTON, Federal, Wall Street, Fed, Fed's, Governors, CNBC, Interactive, Federal Reserve Bank of Boston, Dallas Fed, European Central Bank, Bank of England, Bank of Japan, “, Yale School of Management
Locations:
Jackson Hole , Wyoming, Ukraine, U.S