Business Standard

Too good to be bad, too risky to be good: Economy has Fed in a fix

Financial markets and professional forecasters seem braced for the latter

US economy, Economy
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Photo: Bloomberg

Reuters WASHINGTON
After playing catch-up with inflation through the past year in a policy shift made urgent by relentlessly rising prices, the US Federal Reserve now faces a judgment about whether the economy is strong to motor through even higher interest rates or is on the cusp of a crack-up.
 
Financial markets and professional forecasters seem braced for the latter. US investors from crypto rebels to index fund loyalists lost in excess of $8 trillion this year as markets wilted under the fastest Fed rate hikes in 40 years; bond markets seem convinced a recession is coming; economists, in surveys by Reuters

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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